India has voiced concerns over the United States' recent decision to impose a substantial $100,000 annual fee on H-1B visas, highlighting the potential for "humanitarian consequences" affecting families. The Ministry of External Affairs (MEA) stated that it is carefully studying the full implications of this measure. The government hopes that the US authorities will address the disruptions caused to families.
The H-1B visa program is widely utilized by American companies to employ skilled foreign professionals, a significant number of whom are from India. These visas, typically valid for three years and renewable, have been a pathway for Indian talent to contribute to the U.S. economy, particularly in the technology sector. India accounts for approximately three-quarters of H-1B recipients. There are around 300,000 high-skilled Indian workers, mostly in the technology industry, on H-1B visas currently in the US.
Prime Minister Narendra Modi emphasized India's need for self-reliance in light of the US H-1B visa fee hike. Modi stated that India's "biggest enemy" is dependence on other countries and stressed the importance of becoming "Atmanirbhar" (self-reliant).
The new rule, effective September 21, 2025, has generated considerable discussion and worry. Immigration attorneys and companies have urged H-1B visa holders and their families currently outside the U.S. to return immediately to avoid potential denial of entry.
Industry leaders, political figures, and community representatives have cautioned that this decision could backfire on the U.S. and potentially benefit India. Former Niti Aayog CEO Amitabh Kant believes that the increased fee will stifle innovation in the U.S. and accelerate India's growth. He suggests that by restricting global talent, the U.S. may inadvertently push the next wave of innovation and startups towards Indian cities like Bangalore and Hyderabad. Infosys veteran and investor Mohandas Pai anticipates that the higher cost will discourage new applicants and lead U.S. firms to increasingly shift work offshore, benefiting India's Global Capability Centres.
Nasscom, India's top IT industry body, has expressed concerns that the fee hike will disrupt the operations of Indian technology service companies and create uncertainty for skilled professionals working in the U.S.. They also flagged concerns over the September 21 implementation timeline. Nasscom also pointed out that Indian firms have been hiring more locally in the US.
The increase in the H-1B visa fee is expected to have a substantial impact on Indian professionals, potentially disrupting their career paths and family lives. The fee, which was previously around a thousand dollars, has now increased to $100,000. This increase could discourage fresh applications. The visa fees of $100,000 is more than the median annual salary of a fresh H-1B visa holder and is more than 80% of the average annual salary of all H-1B visa holders. Some experts believe that the move could kill the H-1B program. Companies like Amazon and Microsoft are asking workers to return and remain in the US for the foreseeable future.
Some perceive the move as an opportunity for India to reverse its brain drain. By creating a supportive ecosystem, India can retain and attract talent, boosting domestic innovation and global competitiveness.
