H-1B Visa Fee Hike To Potentially Have Ripple Effects On US Innovation, Job Economy: Nasscom

(MENAFN- IANS) New Delhi, Sep 20 (IANS) The H-1B visa fee hike, with just one-day deadline, by the US administration can potentially have ripple effects on America's innovation ecosystem and the wider job economy, IT industry's apex body Nasscom said on Saturday.

Reacting to the new White House proclamation, signed by US President Donald trump which introduced a $100,000 annual fee on H-1B visa applications, positioned as part of a broader reform of the skilled worker programme, Nasscom said the timeline for implementation (anyone entering the US after 12:01 a.m., September 21) is also a concern.

“A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption,” said the industry body.

It said they are reviewing the finer details of the order.

“It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India's technology services companies will also be impacted as business continuity will be disrupted for onshore projects and additional cost will require adjustments. Companies will work closely with clients to adapt and manage transitions,” according to Nasscom.

However, it is also important to note that India and India-centric companies have been steadily reducing their reliance on these visas through increased local hiring in recent years.

“These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups. The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom argued.

Nasscom has consistently emphasised that high-skill talent is vital to driving innovation, competitiveness, and growth for America's economy.

This is especially critical at a time when advances in AI, and other frontier technologies are set to define global competitiveness. High-skill talent will remain central to sustaining America's innovation leadership and long-term economic strength.

“While developments are underway, we will continue to monitor developments closely, engage with industry stakeholders on the potential implications, and seek further clarity on the discretionary waiver process, to be granted by the Secretary of DHS,” it noted.

-IANS

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