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'Humanitarian consequences': What India said on Donald Trump's $100k H-1B visa fee
The MEA said it is examining the implications of the United States’ decision to impose a $100,000 annual fee on H-1B visas.
India on Saturday said it is examining the implications of the United States’ decision to impose a $100,000 annual fee on H-1B visas, but stressed that the measure could have “humanitarian consequences”.
“The government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program,” a statement issued by the ministry of external affairs said. Follow H-1B visa live updates
The ministry underlined that both India and the US have a stake in “innovation and creativity” and said the two sides “can be expected to consult on the best path forward.”
“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India,” the MEA said, adding, “Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries.”
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The ministry further added that the new requirement is “likely to have humanitarian consequences by way of the disruption caused for families".
Trump's H-1B visa move
US President Donald Trump on Friday signed a proclamation that will raise the fee for H-1B visas to a staggering $100,000 annually — up from $1,000–5,000 — the latest in the administration’s efforts to crack down on immigration.
India, which accounts for 71% of H-1B visa holders, is expected to be hit hardest by the move. Currently, around 300,000 (3 lakh) high-skilled Indian workers, mostly in the technology industry, are on H-1B visas in the US.
Also Read | H-1B visa shock first in double blow? Indian tech sector spooked already by tax proposal in US
An HT analysis shows that Trump's move on H-1B visa amounts to effectively killing the programme. The new visa fees of $100,000 announced by Trump is more than the median annual salary of a fresh H-1B visa holder and more than 80% of the average annual salary of all H-1B visa holders.
Trump's move to hike H-1B visa fees comes amid a downturn in the bilateral relationship between India and the United States. The US had imposed a 25% reciprocal tariff that took effect August 7, followed by an additional 25% levy as a penalty for Russian oil purchases that kicked in August 27, bringing the total rate to 50%.
However, two recent positive exchanges between Prime Minister Narendra Modi and Donald Trump on social media had signalled a thaw in the relationship.
Earlier today, hours after Trump's signed proclamation on H-1B visa, Prime Minister Modi, underlined the importance of self-reliance in India while speaking during the public address in Bhavnagar,Gujarat. Talking about the need for India to become self-reliant, he said that the real enemy of the country is dependence on other countries.
