Tuesday, 02 January 2024 12:17 GMT

H1B Visa Fee Hike: Full Implications Being Studied, Says Indian Government


(MENAFN- Khaleej Times)

The Indian government has said that the full implications of the US President Donal Trump's decision to impose $100,000 annual fee on H-1B visa applications is being being studied by all concerned.

A statement by India's Ministry of External Affairs read, "The Government has seen reports related to the proposed restrictions on the US H-1B 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 H-1B program."

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"Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward," it added.

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"Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India. Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries," it said.

"This measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the US authorities," it added.

Trump on Friday (US time) issued a proclamation imposing a $100,000 fee on H-1B visa applications. The action aims to curb the overuse of the program, allowing companies to bring in only "highly skilled" workers from other countries. The Trump administration believes that this move will create and protect jobs for US workers.

The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients. Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.

The United States approved approximately 400,000 H-1B visas in 2024, two-thirds of which were renewals.

Nasscom, representing India's $283 billion IT and business process outsourcing industry, said the abrupt rollout of the policy would impact Indian nationals and disrupt continuity of ongoing onshore projects for the country's technology services firms.

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