US President Donald Trump has profoundly changed the landscape for H-1B visas by skyrocketing the annual fee more than tenfold. Previously costing between $10,000 and $80,000, the fee has now surged beyond $100,000. This decision is perceived as a substantial setback for Indian professionals and IT firms who dominate the skilled workforce migrating to America.
Boost for India's Growth Prospects
Despite its immediate challenges, this decision might herald transformative opportunities for India. Experts suggest it could lead to a shortage of skilled workers in the US, prompting major IT companies to consider relocating operations outside America. Amitabh Kant, former CEO of NITI Aayog, sees this as a golden opportunity for contributing to a developed India.
In a post on X, Amitabh Kant wrote, "Donald Trump's $100,000 H-1B fee could hinder American innovation while invigorating India's innovative spirit. By closing the doors to global talent, America is driving the next wave of labs, patents, innovations, and startups towards Bangalore, Hyderabad, Pune, and Gurgaon." He emphasized, "India's brilliant doctors, engineers, scientists, and innovators have a chance to propel India towards development. America's loss could prove India's gain."
Rise in Offshoring
Former Infosys CFO Mohandas Pai warns that the annual $100,000 fee on H-1B visa applicants might stifle demand, potentially accelerating offshoring in the coming months. Pai dismisses the belief that Indian IT firms send cheap labor to America, stating the average salary for the top 20 H-1B companies is already well over $100,000.
He also noted, "The immediate impact is limited to new applications, having no effect on existing visas. Over the next 6-12 months, companies are expected to focus on offshoring since on-site hiring in America will become more costly." Pai predicts that offshoring will consequently increase significantly.
Impact on American Companies
Industry insiders, referenced by PTI, indicate that Indian companies typically file between 8,000 and 12,000 new H-1B applications annually. However, the ramifications of Trump's decision will extend far beyond this, touching giants like Amazon, Google, Microsoft, Meta, and Apple, all of which secure thousands of approvals each year to employ the 'best talent'.
David Bier, Director of Immigration Studies at the Cato Institute, in an X post, praised the significant contributions of Indian H-1B employees to the US, including billions in taxes and services. He added, "Indians are among the quietest, most intelligent and interesting people we have, yet we offer them hostility and discrimination?"
Enduring Discrimination
Bier also highlighted the systemic discrimination within US legal immigration processes, particularly affecting Indians. For decades, they have been restricted from becoming permanent residents solely due to their nationality. The children of these workers, American in every way imaginable, face similar discriminatory practices, being compelled to leave or win a lottery upon reaching adulthood.
The US H-1B visa program has significantly contributed to brain drain from India, enabling America to attract top talent without incurring training expenses borne by Indian institutions. This is notably prevalent in the IT sector, where large-scale brain drain results in a loss of valuable human capital for India.
A Self-goal by President Trump?
The substantial increase in visa fees offers an opportunity for Indians working in America to return and contribute to their homeland's growth with their skills and ideas. This could greatly bolster the 'Aatmanirbhar Bharat' initiative, which the government heavily promotes across sectors like defense, technology, and research & development.
Former diplomat K.P. Fabian remarked, "While Trump's move will affect Indians, it's an unnecessary overreach impacting the American economy as well. The young Indian workforce has been a significant brain power backing the US economy. This decision can be seen as a self-goal by President Trump."
