Trump’s $100K H-1B Fee Sparks Outcry, Experts Say Move Hurts US Tech And Boosts India

By Surabhi Gupta

New Delhi: On Friday, US President Donald Trump signed a proclamation that will force a new annual fee of $100,000 (around Rs. 90 lakh) for H-1B visa applications and renewals, while also introducing a “gold card” visa costing $1 million as a possible route to citizenship in the US.

The planned increase in H-1B visa application fees is sure to affect Indian professionals in the US adversely, as thousands of them are living and working in the States under the H-1B visa. As per the data from the United States Citizenship and Immigration Services (USCIS), 207,000 Indians were given H-1B visas in FY 2024, which was 191,000 in FY 2023.

Diplomats, technology experts, industry leaders, and academics, while speaking to ETV Bharat, cautioned that this provision would choke the flow of Indian talent to die in the US, and inflate costs for US companies.

“An Unnecessary Atrocity”

K. P. Fabian, a veteran diplomat, did not shy away from his response. He said, “What President Trump has done, to put it mildly, is an unnecessary atrocity. Young Indians will be hit, it is true. Even more, the US economy, benefiting from brain power from India, will be hit. Trump is scoring a self-goal.”

Fabian stressed that if the $100,000 annual fee is borne by employers, American companies will inevitably prefer local hires.

“Obviously, the flow from India will be drastically reduced or stopped virtually. This move will slow down the pathway to permanent residency (Green Card) for young professionals starting their careers in the U.S., and uncertainty is a disincentive to anyone looking at the U.S. as a destination to study or work. We also have to think about what quid pro quo will be demanded by Trump for withdrawing the executive order,” he cautioned.

Ambassador Dr Deepak Vohra, Special Advisor in Africa, struck a more optimistic note for India. “America is helping us. Indian talent will work from India online. The best brains in the world will stay home. The American property market will be affected. We will see more Global Capability Centres (GCCs), of which India already has more than half the world total, and strategic offshoring in India.”

He highlighted how India has evolved into the “GCC capital”, hosting innovation hubs that no longer serve merely as cost-saving centres but as strategic transformation engines for global corporations. “The $100,000 fee cuts America off from the very talent pool that has helped build the nation’s innovation economy,” Vohra added.

Tech Experts Warn Of Costly Fallout

Cyber expert Amit Dubey underlined the financial shockwave such a policy will unleash. “The $100,000 H-1B fee will drastically raise the cost of Indian talent in the U.S., forcing companies to rethink their global hiring models. While it may slow Indian professionals’ mobility to the U.S., it could also accelerate growth of the tech ecosystem back home.”

Dubey called the policy “a clear attempt by the U.S. to monetize skilled migration,” warning that it effectively locks out early- and mid-career professionals, who form the backbone of India’s STEM talent pipeline.

“It may push talent either to stay in India or seek opportunities in countries with friendlier visa policies. For India, it’s both a challenge and an opportunity to strengthen our domestic IT sector and invest in remote-work infrastructure, reducing dependence on U.S. visa regimes,” he said.

Ashish Gangrade, CEO of VigorousOne, took a broader view, calling the move both a disruption and a catalyst. “The proposed measures, higher annual fees for H-1B visas and the introduction of a high-value ‘gold card’ visa, will certainly create short-term challenges for Indian IT professionals and companies with onshore operations in the U.S. However, in the long term, this could accelerate several positive shifts.”

He pointed to two emerging trends:

• Expansion of offshore and digital delivery models: “This will drive Indian IT and technology firms to double down on global delivery models that rely less on physical mobility and more on digital collaboration, AI-enabled service delivery, and offshore centres of excellence.”
• Growth in Tier-2 and Tier-3 Indian cities: “Where cost advantages, strong talent pools, and improved infrastructure can create the next wave of offshoring growth beyond metros.”

Gangrade added that offshoring is no longer limited to IT services. “Areas such as public sector program management, grants administration, compliance, and governance-related work are increasingly being delivered from India. This will strengthen innovation, talent development, and inclusive growth across India’s cities.”

“A Blunt Deterrent”: Governance Experts Raise Alarm

Sakshar Duggal, a cyber law and technology governance expert, called the move a “big setback”. “A $100,000 annual H-1B fee makes it harder for firms to justify sending talent to the U.S. and may shrink opportunities for skilled workers. The $1 million gold card signals that America is prioritising wealth over talent, which could reshape the India-U.S. tech corridor.”

He warned that while Big Tech giants might absorb the costs, startups and smaller firms will struggle. “The $100,000 H-1B fee is a blunt deterrent that will hit Indian tech professionals the hardest, despite their outsized contribution to the U.S. economy. It may protect large corporations, but small start-ups and innovation ecosystems will suffer.”

Duggal laid out four critical perspectives:

• Deterrent impact: “It’s not just regulation, it’s an active barrier that reduces access for outside talent, especially Indians who form 70% of H-1B users.”
• Indian contribution: “Indian techies have long been the backbone of the U.S. technology sector, fueling innovation, productivity, and growth.”
• Start-up disadvantage: “Smaller companies that rely on affordable global talent will struggle, slowing their growth plans.”
• Alternative approach: “Rather than closing doors, the U.S. should simultaneously leverage foreign expertise and invest in STEM education to build domestic talent pipelines.”

Ajay Sharma, AI and Technology Governance Expert, said, “$100,000 H-1B fee is a blunt deterrent that will hurt Indian tech professionals and start-ups the most, prioritising wealth over talent. While Big Tech may cope, smaller firms will struggle, shrinking opportunities for skilled workers. He added that Indian talent has been the backbone of U.S. innovation, and instead of shutting doors, America should balance foreign expertise with stronger STEM education to build a sustainable local pipeline.”

Academic Concerns: A Threat To Global Talent Integration

Yogesh Rai, professor at Jawaharlal Nehru University, framed the move as a threat to decades of global talent integration. “The U.S. decision to impose a $100,000 annual fee on H-1B visas threatens to unravel decades of global talent integration, severely disrupting the tech industry and hindering innovation.”

With Indian professionals comprising over 70% of visa holders, Rai said the impact would be immediate. “This move risks accelerating a brain drain, pushing talent toward more welcoming nations like Canada and Europe. While the impact on the U.S. is clear, stifled growth and diminished competitiveness, India stands to gain, potentially fueling its $500 billion startup ecosystem with returning expertise.”

USCIS Data: India’s Dominance In H-1B

According to the latest U.S. Citizenship and Immigration Services (USCIS) report, Indians remained the largest beneficiaries of H-1B visas in FY 2023.

72% of all approvals went to Indian-born professionals.

China was a distant second at 12%.

Computer-related occupations made up 65% of approvals, with Indian IT majors leading the charge.

The median age of H-1B workers was 33 years, underscoring a young, skilled workforce.

Median annual compensation stood at $118,000 (₹98 lakh).

Despite this dominance, total approvals dropped 13% from FY 2022, and “change of employer” petitions fell nearly 39%, reflecting reduced mobility amid tech layoffs and uncertainty.

The gender gap also persists: 71% male vs. 29% female among H-1B approvals.

India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China was a distant second at 11.7%, according to government data.

Market Jitters And Corporate Silence

The announcement rattled markets. Shares of Cognizant Technology Solutions fell nearly 5%, while U.S.-listed Indian majors Infosys and Wipro dipped between 2% and 5%.

Large corporations like Amazon, Microsoft, and Meta, among the biggest H-1B users, declined to comment. In the first half of 2025 alone, Amazon and AWS secured over 12,000 approvals, while Microsoft and Meta each had more than 5,000 approvals.

“All the big companies are on board,” investor Howard Lutnick told reporters in a press conference, suggesting U.S. firms were resigned to the new fees. Meanwhile, the Indian Embassy in Washington and the Chinese Consulate General in New York did not immediately respond to requests for comment.

Legal Questions And Policy Debate

Immigration advocates raised concerns about the legality of the fees. Aaron Reichlin-Melnick, policy director at the American Immigration Council, said, “Congress has only authorized the government to set fees to recover the cost of adjudicating an application.” With Trump framing the change as an “executive order,” questions remain about its durability if challenged in courts or reversed by future administrations.

As Ambassador Vohra summed up, “The U.S. is cutting itself off from the very talent pool that has helped it lead the digital economy. India now has the chance to absorb that talent and strengthen its role as the world’s innovation hub.”

Dr Monish Tourangbam, Senior Consultant, Chintan Research Foundation, observed, “This is the latest jolt from the Trump administration but not a surprising one, in a series of drastic moves that his administration has taken to overhaul America's immigration policies. Amid the tensions involving trade negotiations and oscillating tariffs, the question of skilled labour mobility adds a new layer of complexity to be ironed out between the two countries. Non-consultative and hyper-transactional decisions, under the "America First" sloganeering, ignore the highly intertwined and mutually beneficial technology and talent pool ecosystem, which also lies at the very heart of any vision of creating more synergy on critical and emerging technologies between India and the United States. However, the current scenario perhaps also holds a silver lining for structural reforms in the Indian research and innovation hubs that could produce a new bottom-up revolution that would provide the enabling environment for fundamental and applied research in India to contribute effectively towards the goal of a Vikshit Bharat and India as a primary provider of digital public goods in the Global South.”

Abhijit Majumdar, Director of Finance from Oil India Limited, said, “This will only make entry into the US difficult for companies intending to engage people from abroad. Higher cost for talent may lead to inflation in the wage bill. Only big firms will big firms will have an edge over small firms in terms of their ability to employ foreign talent. Of late, the rush to go to the US for jobs has slowed down. This will further slow down the process. With talents staying back in India or going in numbers will help the Indian economy.”

Dharshan Shanthamurthy, CEO of SISA (a global cybersecurity company for digital payments), said, “The announcement made by Trump will impact the Indian IT services sector in the short run, but I am confident the IT sector will innovate and pivot to other markets. In the long run, the return of trained and qualified IT engineers to India will reverse the brain drain and help India. I see an opportunity in this crisis.”

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