India has voiced its concerns and criticisms regarding the recent decision by the Trump administration to increase H-1B visa fees, with some officials suggesting the move is driven by a fear of Indian talent. The new policy, which imposes a $100,000 fee on H-1B visa applications, has sparked worries about potential disruptions for families and the impact on the Indian IT sector.

Union Commerce Minister Piyush Goyal reacted to the fee hike by claiming that the world is "a little afraid of Indian talent". He asserted that various countries are eager to establish free trade agreements with India, increase trade relations, and improve overall relations, hinting that the H-1B visa fee hike might be a consequence of recognizing India's growing capabilities. Goyal also encouraged Indian talent to innovate and design within India.

The H-1B visa is a non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations. These occupations generally require a bachelor's degree or higher in fields such as science, engineering, and information technology. The H-1B visa program has been a popular pathway for skilled professionals from India to work in the U.S. tech industry.

The fee increase, which took effect on September 21, 2025, has caused considerable uncertainty for businesses, professionals, and students. The move prompted immigration attorneys and companies to advise H-1B holders and their families currently outside the U.S. to return immediately, or risk being stranded.

The Indian government has stated that it is studying the full implications of the policy and that it hopes any disruptions can be addressed suitably by U.S. authorities. The Ministry of External Affairs has emphasized that talent mobility has significantly contributed to technology development, innovation, economic growth, and wealth creation in both the U.S. and India.

The White House has clarified that the new fee applies only to new visas and not to renewals or current visa holders. Despite this clarification, the announcement has led to widespread confusion and concern among visa holders, with many rushing back to the U.S.. Companies like Tata Consultancy Services, Microsoft, and Amazon advised employees on H-1B visas to either stay put or return to the U.S. before the new fee came into effect.

Critics of the H-1B visa program have applauded the fee hike, arguing that the program is often used to replace American workers with lower-paid foreign workers. However, others have warned against targeting H-1B visas, stating that the U.S. does not have enough domestic talent to fill crucial tech sector job vacancies. Some experts have also suggested that the fee increase is a political move that may not survive legal challenges.