Our Bureau
New Delhi
US President Donald Trump’s recent decision to impose a steep $100,000 fee on H-1B visas has stirred intense debate, with many experts warning it could undermine American innovation while offering a significant boost to India’s technology sector. The fee hike, effective immediately, marks a drastic increase from the current filing fees of $2,000 to $5,000. H-1B visas, predominantly held by Indian professionals, enable American companies to employ highly skilled foreign workers, especially in tech fields.
Trump justified the move as a protectionist measure to shield US jobs from being outsourced to cheaper foreign labor. However, former Niti Aayog CEO Amitabh Kant argued that it is counterproductive for the US. Kant stated that “America’s loss will be India’s gain,” predicting the fee hike will stifle US innovation while accelerating India’s emergence as a global innovation hub. The extra cost is expected to deter new visa applications, compelling US companies to expand offshore operations in Indian cities like Bengaluru and Hyderabad. This shift could spur greater innovation, patents, and startup growth within India.
Industry veterans like Infosys’s Mohandas Pai foresee an increase in offshoring, as US firms avoid the inflated visa costs by growing their global capability centers in India. Entrepreneurs such as Snapdeal co-founder Kunal Bahl highlighted that many skilled Indian professionals currently eyeing the US may choose to return home, attracted by India’s expanding opportunities and rising talent density.
While India’s government expressed concern about potential humanitarian consequences, such as family disruption, the overall impact is widely seen as a catalyst for India’s tech sector transformation. The fee hike may prompt a talent return, boost Indian startups, and strengthen the country’s position in the global technology landscape—turning an American policy intended to curb foreign labor into a boon for India’s economy.
