In a significant diplomatic development, India has voiced strong opposition to the United States’ decision to implement a substantial new fee for H-1B visa applicants. The proposed charge of $100,000, a dramatic increase from the current rates, has been labeled by the Indian government as something that will have “humanitarian consequences” due to the disruption it could cause to families.
President Donald Trump’s administration announced the hike, which is set to take effect on September 21st. This move has caused considerable uncertainty for businesses and individuals worldwide, particularly given that Indian nationals are the primary recipients of H-1B visas, accounting for over 70% of those issued.
In response to the announcement, some US tech companies reportedly advised their H-1B visa holders to remain in the United States or to return immediately if they were abroad. However, the White House later clarified that the fee would not apply to existing visas or renewal applications.
The Indian Ministry of External Affairs issued a statement on Saturday, emphasizing that the government “hopes that these disruptions can be addressed suitably by the US authorities.” The statement further highlighted that the exchange of skilled workers has “contributed enormously” to both nations and urged policymakers to consider the mutual benefits and strong people-to-people ties between India and the US when assessing such policy changes.
This fee increase comes at a time of heightened trade tensions between the two countries, following the imposition of tariffs by the US on Indian goods. The US exported $41.5 billion worth of goods to India in 2024, while importing more than twice that amount. India’s Commerce Minister is expected to visit the US for trade talks early next week.
Industry bodies like Nasscom have also expressed concerns, stating that such abrupt policy shifts create significant uncertainty for businesses and professionals. The White House justified the fee by citing data suggesting that some H-1B visas are being “abused” to drive down American wages and outsource jobs, though the order does allow for national interest exemptions.