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Burden of US visa restrictions on talent-exporting nations

This article is authored by Gunwant Singh, scholar, international relations and security studies, Jawaharlal Nehru University, New Delhi.

Published on: Oct 22, 2025, 10:39:57 IST
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The recent changes to US visa and immigration policies have hurt its reputation as a place where talented people from all over the world want to live and work. This has had significant effects on the countries that have long sent the most skilled workers and students to the US. The American Dream is becoming harder to reach because of stricter immigration rules, higher visa fees, and limits on who can enter and stay. This is especially true for countries like India, China, and the Philippines, which have historically sent a lot of workers and students to the US These policies could put a lot of stress on these countries that send workers abroad, not just in terms of money but also in terms of developing human capital and working together with other countries.

USA Flag (AP)
USA Flag (AP)

In the last few years, the US government has put in place a number of strict rules that have changed the way people can immigrate to the country. For example, under the Trump administration's policies in 2025, the fees for processing H-1B, L-1, and O-1 visas went up by more than 50%, and new compliance costs were added, making it harder for foreign professionals and businesses to get visas. The H-1B visa limit is still 85,000 per year, but many skilled workers are having to wait longer or are being denied outright because of stricter checks and higher rejection rates. This makes many people not even want to try the pathway. These rules hurt countries like India the most. India alone makes up almost 70% of H-1B visa applicants. Indian IT companies and professionals have said that visa approvals have dropped by almost 30% since 2025. This has forced them to either put off projects or look for new markets and partners.

These restrictions go beyond visas to include stricter immigration enforcement measures like tougher background checks, more deportations, and bans on certain nationalities, which are often justified by national security. For example, the expanded travel bans that went into effect in early 2025 have made it harder for people from a dozen countries to enter the US. Many of these countries are important sources of global talent and international students. These policies have not only made life very hard for people who want to move to the US, but they have also made things very uncertain. As a result, many Indian, Chinese, and Filipino students are now thinking about whether or not they want to study or work in the US. The drop in international student applications, especially from India, has had a clear effect on the economy of American universities. These schools depend on the tuition fees paid by international students, which are now putting many of them in financial difficulties.

The effects of these policies are huge for the countries that send the US professionals, researchers, and entrepreneurs. India has historically sent the most STEM professionals to the US, but the flow of talent from India is slowing down because of rising costs and strict entry rules. Policies from the Obama administration made it easier for Indian engineers and scientists to come to the US. This led to a large diaspora that made a big difference in American innovation and economic growth. But current policies could undo these gains, making it harder for the two countries to work together on technology and research, and forcing businesses that used to rely on these experts to find other ways to get talent. This could cause a long-term loss of skills, which would make it harder for India to build its own innovation ecosystems. According to a recent report from the ministry of external affairs, more than 200,000 Indian professionals applied for US work visas in 2024. However, the approval rate dropped sharply this year, leaving many people in limbo.

The burden is not just financial; it is also developmental. Countries like the Philippines and Nigeria that depend on money sent home by people living in the US see less money coming in because fewer skilled workers can move there or stay there legally. For instance, remittances from the US to the Philippines dropped by 10% in 2025 compared to the year before. This could have an effect on local development projects and social welfare programs. The brain drain is also a double-edged sword: the US gains from the influx of foreign talent, but countries like India and others lose their best minds, leaving a gap in domestic innovation and leadership. These countries are having to spend more on their own education and research and development because they are losing people. This often takes longer than expected.

Also, the current US policies could make people angry and hurt diplomatic goodwill, making it harder to work together on global problems like climate change, public health, and security. As skilled workers look for new places to live, countries like Canada, Australia, and those in Europe are doing everything they can to attract these workers by making their policies more welcoming and speeding up the visa process. For instance, Canada's Express Entry system has seen a 50% rise in applications from skilled workers from India and China in 2025. This shows that the global talent landscape is changing a lot. This redistribution of talent could slow down the US's technological leadership and influence, while giving other countries more power to come up with new ideas.

The US visa and immigration rules of 2025 are very hard on the countries that send workers to the US. India, China, the Philippines, and other countries are paying the price in terms of their economies, societies, and development. The US wants to protect national security and jobs at home, but these policies could hurt the very thing that has historically made American technology so powerful: Innovation. For countries with a lot of talent, this means changing their strategy: they need to invest in innovation at home, build a wider range of international partnerships, and create a globally mobile, skilled workforce that is ready to take advantage of opportunities elsewhere. The global talent ecosystem is changing, and how countries deal with this new reality will affect their future economic and strategic positions.

This article is authored by Gunwant Singh, scholar, international relations and security studies, Jawaharlal Nehru University, New Delhi.