The Government of India has expressed serious concern over the United States’ recent decision to impose a steep annual fee of USD 100,000 (over Rs 88 lakh) on H-1B visas, warning that the measure could have wide-ranging humanitarian and economic consequences. In a statement released by the Ministry of External Affairs on Saturday, New Delhi underscored that the new policy would significantly disrupt the lives of visa holders and their families, particularly the large Indian diaspora that constitutes nearly 70 percent of all H-1B visa recipients. The government urged Washington to recognize the humanitarian impact of this move and called on US authorities to ensure that the disruptions are suitably addressed. Officials also confirmed that India is closely examining the implications of the decision and is consulting with stakeholders to determine the most effective response.
The announcement comes after US President Donald Trump signed an executive order on Friday requiring American companies to pay USD 100,000 annually for every foreign worker employed under the H-1B programme. The rule, which takes effect immediately, bars H-1B visa holders from entering the United States unless the fee has been paid by their sponsoring employers. The decision has sent shockwaves across the global tech workforce, with Indian professionals—who represent the largest share of H-1B workers—expected to be the hardest hit. India has emphasized that skilled talent exchange between the two countries has been central to fostering innovation, economic growth, and competitiveness in both economies. The government noted that the movement of high-skilled workers has historically contributed to wealth creation and technological advancement in the US, and therefore, recent steps must be evaluated within the framework of mutual benefits and strong people-to-people ties.
According to the government’s statement, Indian industry bodies, including Nasscom, have already begun analyzing the policy shift, releasing initial assessments to clarify misconceptions about the H-1B programme. The ministry pointed out that stakeholders in both India and the US have a vested interest in safeguarding innovation and creativity, making it imperative for industries on both sides to engage in consultations to chart the best way forward. H-1B visas, which require at least a bachelor’s degree, were originally designed to allow companies to fill high-skilled positions that could not be easily sourced locally. Critics in the US, however, have long argued that the programme has been misused to replace American workers with cheaper foreign labor, a charge that the Trump administration has amplified as part of its broader anti-immigration stance.
In his proclamation, President Trump described the H-1B system as “exploited” and labeled its misuse a threat to national security. He cited investigations into outsourcing companies that relied heavily on H-1B workers and alleged that many had engaged in fraud, money laundering, and other unlawful practices to bring in foreign employees. Trump argued that the imposition of higher fees was necessary to curb such abuse while still allowing firms to employ the most skilled talent where required. From Sunday, any H-1B worker whose employer has not paid the mandated fee will be denied entry into the United States. Several American companies have already advised their H-1B and H-4 employees to return before the new rules take effect.
Industry experts, however, caution that the abrupt fee hike could produce unintended ripple effects across the US economy. Nasscom, in particular, warned that the decision might weaken America’s innovation ecosystem and job market, as Indian IT firms and professionals have long played a critical role in driving competitiveness and technological progress in the US. The association also highlighted that Indian firms have steadily increased local hiring in America in recent years, countering the notion that the H-1B programme displaces domestic talent. Yet the suddenness of the new policy has generated uncertainty, leaving businesses and employees scrambling to adjust. For India, the move represents not just an economic challenge but also a humanitarian one, as families of thousands of professionals face the possibility of separation or abrupt disruption to their lives abroad.
