India has criticised Donald Trump's decision to impose a $100,000 fee on H-1B visas for skilled foreign workers in the US, with ministers claiming Washington is 'afraid of our talent'. The fee, which came into effect on Sunday, is 60 times the current cost and has sparked warnings of 'humanitarian consequences' from the Indian government.
India is the largest beneficiary of the H-1B visa programme, accounting for 71% of approved visas in 2024. The White House argues the visas are being 'abused' to undercut American wages and outsource IT jobs, claiming companies lay off US workers to hire cheaper foreign labour. Those on H-1B visas now make up 65% of the IT workforce in the US.
India's external affairs ministry said the fee would cause 'disruption to families', while commerce minister Piyush Goyal remarked: 'They are also a little afraid of our talent. We have no objection to that.' The government hopes the US will address the disruptions, emphasising that the exchange of skilled workers has contributed enormously to both nations.
The fee hike sent ripples across the IT industry, with shares of Indian firms like Infosys and Tata Consulting Services slumping. Nasscom, India's IT trade body, warned of 'ripple effects on America's innovation ecosystem' and 'considerable uncertainty'. The chief minister of Telangana, Revanth Reddy, urged Prime Minister Narendra Modi to treat the issue on a 'war footing', warning of 'unimaginable' suffering for Indian IT workers in the US.
Confusion reigned as the White House clarified the order applies only to new applicants, not existing visa holders or renewals. Companies including Tata Consultancy Services, Microsoft, and Amazon advised employees to return to the US before 21 September, causing panic. One Indian worker described 'absolute panic' and a 'travel ban', while another said many are reconsidering staying in the US due to uncertainty.
In China, which accounts for 11.7% of H-1B visas, the government has not responded. Online, social media users accused the US of 'maliciously crafting policies purely to torment H-1B holders', with one calling the fee hike 'insulting'.
