(MENAFN- Live Mint) Amid the U.S. government shutdown, the Embassy in India said that while passport and visa services will continue. However, the embassy clarified that scheduled passport and visa services both within the United States and at US embassies and consulates abroad will continue as circumstances allow.

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Here's what US Embassy said

In a post X, US Embassy to India,“At this time, scheduled passport and visa services in the United States and at U.S. Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits. We will not update this account until full operations resume, with the exception of urgent safety and security information. For information on our services and operating status, visit”

The current US government shutdown is the first in nearly seven years, with the last partial shutdown occurring during Donald Trump's first term in 2018.

As with past shutdowns, all non-essential federal services have come to a halt. However,“excepted” employees, those whose work is deemed necessary to protect life and property, are required to continue working without pay until the shutdown ends.

Also Read: US Government shutdown persists as Senate fails to pass funding bills yet agai

During a government shutdown, the federal government halts all "non-essential" operations. This leads to noticeable disruptions in several areas, including delays or reductions in visa and passport services, the closure or limited functioning of federal agencies such as NASA and the Department of Education, and restricted access to national parks and monuments. Essential services, such as those related to public safety and national security, continue to operate, but often without immediate pay for employees.

Despite agreeing to attend a meeting on Monday with key congressional leaders, including Senate Majority Leader John Thune (R-S.D.), House Speaker Mike Johnson (R-La.), House Democratic Leader Hakeem Jeffries (D-N.Y.), and Senator Chuck Schumer, Trump has so far shown little willingness to engage with Democrats' demands on health care funding.

What about visas?

While some government services continue during a shutdown if funded by user fees, others may face cutbacks. The US Embassy in India has stated that consular services will remain operational during the lapse in congressional appropriations.

However, not all functions are guaranteed to run smoothly.

Although the embassy reaffirmed that passport and visa services“will continue ... as the situation permits,” that wording signals potential limitations. Reduced staffing or reliance on collected fees may lead to slower processing times, shortened operating hours, or the suspension of non-urgent applications-patterns seen in past shutdowns.

China launches“K visa”

China on Wednesday launched a new visa program designed to attract foreign talent in science and technology, as part of its broader strategy to surpass the United States in key innovation sectors.

Announced in August, the new“K visa” streamlines the immigration process for qualified individuals, according to Chinese state media. The move highlights a stark contrast with recent U.S. policy, where the Trump administration has imposed sudden and costly changes to skilled worker visas, raising barriers for foreign professionals.

“Against the backdrop of some countries retracting, turning inward, and sidelining international talent, China has keenly seized this important opportunity and promptly introduced this policy,” state newspaper People's Daily said in a comment piece on Tuesday.

What makes K visas“different”?

In contrast to many other visa categories, the K visa does not require a domestic employer or entity to issue an invitation to the applicant, as reported by AFP.

“K visas will offer more convenience to holders in terms of the number of permitted entries, validity period and duration of stay,” state news agency Xinhua reported in August.

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The official description for those able to apply is "young foreign scientific and technological talents", but the exact age, educational background and work experience requirements needed are as yet unclear. Xinhua said visa-holders will be able to“engage in exchanges in fields such as education, culture, and science and technology, as well as relevant entrepreneurial and business activities”.

Also Read: Donald Trump's BIG warning as government shutdown looms: 'A lot' of federal workers could be laid off

Across the Atlantic, the US tech industry has been rattled by unexpected changes made by the Trump administration to the H-1B visa procedure. H-1Bs allow companies to sponsor foreign workers with specialised skills --- such as scientists, engineers, and computer programmers -- to work in the United States for three years, with a possible extension to six.

Such visas are widely used by the tech industry, but the new H-1B visa policy now requires a one-time $100,000 fee.

The People's Daily article on Tuesday pushed back at what it called "strange rumours" around the new visa creating "immigration problems" in China . "The so-called "immigration crisis" will not materialise, we should have cultural confidence," it said.

H-1B visa

India remained the top recipient of remittances at USD 118.7 billion in FY24, with about 23 per cent of it coming from the US. The visa fee hike is likely to reduce both the inflows and the share of the US over the medium term.

Also Read: US signals H-1B overhaul days after Trump's fee hike, calls influx of cheap tech consultants with families 'just wrong'

Between October 2023 and September 2024, total H-1B visas issued for four IT companies, which account for 50 per cent of the industry revenue, stood at 34,507, it said, adding that over 35 per cent was for initial employment and 65 per cent for continuing employment. The share of initial employment is expected to decline over the medium term, it said.

Visa expenses come at 0.02-0.05 per cent of the total employee cost, with H-1B visa fees ranging between USD 2,000 and USD 5,000 per person, it said.

Over a third of the approved H-1B applications from October 2023 to September 2024 were for initial employment and if this share remains constant next fiscal year, the new fee structure could crank up visa cost to 1 per cent of total employee cost. If the share is reduced, visa-related costs are expected to remain 0.3-0.6 per cent of the total employee cost.

At this time, scheduled passport and visa services in the United States and at U.S. Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits.

Tier-1 IT companies such as TCS, Infosys, Wipro and HCL generate 96 per cent of their revenue from the international markets, with the US alone accounting for 53 per cent.

(With inputs from agencies)

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