US EditionIndia says U.S. H-1B visa fee hike could hit services exports, remittance
India challenges the US $100,000 H-1B visa fee hike expected to impact nearly 70% of Indian nationals holding these visas and disrupt IT services and remittances.
- On Sep 26, India said it is engaged with the US as Washington frames rules to raise the H-1B application fee to USD 100,000, with the MEA highlighting skilled talent's economic impact.
- Amid tariff-driven tensions, officials view the fee change as part of broader efforts to crack down on immigration after Washington imposed 50 per cent tariffs on Indian goods.
- Indians will be most affected, with Indian nationals cornering 71 per cent of 2024 H-1B approvals and the Indian tech sector employing more than 5.8 million people while current H-1B sponsor fees range from about USD 2,000 to USD 5,000.
- On September 22, MEA spokesperson Randhir Jaiswal said, `We have seen the notice by the US Department of Homeland Security regarding the proposed rulemaking. I understand that stakeholders including the industry have one month to provide their comments` and stated India is engaged with the US amid evolving policies.
- Longer term, the fee may accelerate offshoring to India and disrupt remittance inflows and services exports, though some see potential upside for the US$225 billion Indian IT sector.
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India says U.S. H-1B visa fee hike could hit services exports, remittance
India on Friday said that U.S. decision to impose a one-time $100,000 fee on future H-1B visa applications - widely used by Indian IT firms - risks disrupting services exports and remittance inflows, sectors that have so far remained resilient amid global trade tensions.
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