US President Donald Trump’s move to sharply hike the fee for H-1B visas to $100,000 has Indian tech sector workers and students in America worried about their future in the world’s largest economy. Trump’s move is aimed at addressing worries about US technology workers who believe they lose out on jobs due to immigrant professionals.The H-1B skilled-worker visa programme, which is mainly utilised by the technology sector, has traditionally served as a crucial entry route for foreign professionals into the United States, with Indian nationals comprising approximately 70% of recipients.Now these professionals and students face a significant impact as the Trump administration revises the programme.

Indians & H-1B visas

Indian parents have over the years consistently encouraged their offspring to pursue academic paths—specifically engineering—believing these would provide optimal employment prospects. The Indian Institutes of Technology have produced exceptional English-proficient computer specialists and engineers who became highly sought after in the United States, according to a Wall Street Journal report.Britta Glennon, an economist and assistant professor of management at the Wharton School specialising in immigration and innovation research, told WSJ that Indians demonstrated exceptional engagement with the H-1B programme following its establishment in 1990.The achievements of Indian technology professionals who received H-1B visas inspired more Indian students to pursue similar educational paths, according to Glennon. A notable example is Sundar Pichai, who now leads Alphabet. Indians comprised more than one-third of successful H-1B visa recipients by 2003.Also Read | The $100,000 H-1B gamble: Why Donald Trump’s visa tax won’t save American jobs – winners and losersIn 2007, when visa applications exceeded available positions, US authorities implemented a lottery-based allocation system.

Why are Americans complaining about H-1B visas?

According to the report, US employees have lodged multiple complaints with the Equal Employment Opportunity Commission against Tata Consultancy Services, India’s largest technology services organisation, claiming they were dismissed and their positions were filled by H-1B visa holders.Last year, TCS received 5,500 H-1B visas, placing it second to Amazon’s allocation of over 14,000. The yearly limit stands at 85,000 visas, with educational institutions being exempt from this restriction.TCS has previously stated that these allegations lack substance and emphasised its proven track record as an equal-opportunity employer within the United States.According to research by Colgate University economists Rishi R. Sharma and Chad Sparber quoted in the report, the change to lottery system led Indian outsourcing companies—which provide tech services to American businesses through combined US-based and India-based teams—to submit many applications to enhance their chances of securing H-1B visas.Subsequently, these Indian service providers began lending their surplus US-based Indian employees to clients, triggering protests from American workers who felt they were being displaced through domestic outsourcing.Experts note that whilst outsourcing companies must legally demonstrate payment above certain thresholds, the compensation offered to H-1B employees at these firms typically falls in the lower range for similar positions.

Companies dependent on H-1B visas

Indian outsourcing companies indicate they have reduced their dependence on H-1B visas whilst focusing on training and employing American workers.Also Read | Alternatives to H-1B visas: After fee hike by Trump to $100,000, O1 & L1 visas gain traction; check cost, approval rates

H-1B visa overhaul: Troubles for startups

US is implementing new changes to the H-1B visa programme. The new fee structure will be introduced for first-time applicants beginning next year, alongside plans to modify the lottery system to prioritise applications with higher salary offerings.The increased fees may be a deterrent for startups. Siddharth Sarasvati, at Trial and Error, an AI starup told WSJ that the increased fee poses challenges for startups like theirs. “H-1B needed reform,” said Sarasvati. “But this isn’t reform, it’s a sledgehammer…this ensures that only companies with the deepest pockets can play.”

H-1B visa fee hike: Will it end up being advantage India?

India could potentially gain advantages from stricter US visa regulations affecting Indian technology professionals. According to experts, India’s technological advancement partly resulted from professionals returning after unsuccessful H-1B applications, contributing to the development of centres like Bengaluru.Industry experts are debating the potential global impact of the proposed new visa fee on the IT workforce landscape. Vivek Wadhwa, who leads Vionix Biosciences and previously served as a distinguished fellow at Harvard Law School and Carnegie Mellon, highlighted serious implications for the United States.

Trump’s H-1B visa fee hike: What it means

“Trump’s $100,000 H-1B fee is economic suicide for America. It will force Indian talent to go home, taking with them skills, savings, and global experience. Indian engineers have been trapped in limbo for years because of endless visa backlogs. Trump has just pushed them to make the obvious choice: return home where opportunities are greater,” he was quoted as saying by TOI. Wadhwa noted that this reverse migration would significantly advantage India. “They will bring capital, networks, and the knowhow of scaling companies globally.”“Donald Trump’s 100,000 H-1B fee will choke U.S. innovation, and turbocharge India’s,” said Amitabh Kant, the former head of an Indian government-policy think tank, in a post on X. “By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon.”Also Read | Trump’s H-1B visa fee hike to backfire? Wall Street banks set to rely more on Indian GCCs; may deepen presence in IndiaDespite increased opportunities in India over recent years, the country faces challenges. Many technology graduates struggle to secure well-compensated positions amongst the large talent pool. The work environment remains considerably more hierarchical compared to the United States, according to technology professionals quoted in the report. Additionally, artificial intelligence developments could reduce entry-level positions.A 31-year-old software engineer based in Albany, N.Y., who arrived in the US in 2017 for doctoral studies, highlighted the disparity in professional opportunities. “India has a lot of good schools to train engineers but nothing much to engage them after graduation,” he remarked. He obtained his H-1B visa in 2022 during his company’s first application attempt.Despite finding the visa’s single-employer restriction limiting, he appreciates the American technology sector’s environment. He and his spouse, also an H-1B holder, are considering alternative skilled-worker visa pathways to stay in the US, particularly if H-1B regulations become stricter. They view Canada as an alternative destination rather than returning home, the WSJ report said.Destinations such as Germany, the United Kingdom and Canada are actively seeking to attract skilled professionals from India.As the United States tightens its immigration policies for skilled workers, nations including Germany, Canada and the UK have positioned themselves as welcoming alternatives for Indian technology experts, according to an ET report.