The Modi government is facing strong opposition after the Trump administration announced a significant hike in H-1B visa fees. The increased fee, set at $100,000 per application, has sparked concerns about its impact on Indian tech professionals and the broader India-US relationship.
Opposition leaders have criticized Prime Minister Narendra Modi for what they perceive as a failure to protect India's interests. Rahul Gandhi, a prominent opposition leader, called Modi a "weak PM," reviving a previous criticism from 2017 when the issue was first raised. He argued that Modi had not adequately addressed the visa issue with the U.S. government, leading to the current situation.
Other opposition figures echoed this sentiment. Congress President Mallikarjun Kharge described the visa hike as one of the "return gifts" Modi received after his birthday call with Trump. Kharge also criticized Modi's foreign policy approach, stating that "Bear hugs, hollow slogans, concerts and getting people to chant 'Modi, Modi' is not foreign policy!". He emphasized that foreign policy should prioritize national interests and strategic friendships, not superficial displays.
The opposition has also raised concerns about the economic consequences of the H-1B visa fee hike. They estimate that the move, combined with existing tariffs, could result in substantial losses for India. They also pointed to other U.S. policies, such as the HIRE Act and the lifting of the Chabahar port exemption, as further evidence of a deteriorating relationship.
The Trump administration defended the H-1B visa fee hike as a measure to curb abuse of the program and protect American jobs. Trump stated that the H-1B program had been "deliberately exploited" to replace American workers with lower-paid foreign labor. He also described the "abuse" as a national security threat.
However, critics argue that the move is regressive and could harm the American economy, which relies on skilled foreign workers. Some experts suggest that the increased costs could force Indian IT firms to reconsider hiring and may slow India-US tech collaborations. It could also lead to Indian tech workers seeking opportunities in other countries.
Despite the concerns, some observers believe that the H-1B visa changes could present an opportunity for India to reverse its brain drain. By fostering a supportive ecosystem, India could retain and attract talent, boosting domestic innovation and global competitiveness. This shift could potentially transform India into a hub for tech advancements.
The new H-1B visa fee is scheduled to take effect on September 21, 2025. The proclamation will be valid for twelve months but may be extended. Legal challenges to the proclamation are expected.