India's Ministry of External Affairs stated that it is examining the implications of the massive hike in the application fee for H-1B visas, which was announced by the Trump administration and is now set at USD 100,000.
The ministry noted that this change is likely to have humanitarian consequences and will cause disruptions to families.
"The Government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program," read the statement issued by MEA.
According to the statement, "Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India."
Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries, the statement further said.
The Indian government is hoping that these disruptions can be addressed suitably by the US authorities.
According to the Proclamation signed by US President Donald Trump, H-1B employees, including current visa holders, will be denied entry to the US beginning Sunday, September 21, unless their employer has paid a USD 100,000 annual fee for the employee.
This change in the application fees is significantly higher than the current H-1B visa fees, making it economically unviable for most companies to hire individuals from outside the US.
H-1B visas are a cornerstone of the US tech industry, allowing companies to sponsor foreign workers with niche skill sets. According to reports, the US currently issues approximately 85,000 H-1B visas annually, with India accounting for nearly 75 per cent of these permits, followed by China.
According to industry experts, such a massive hike in H-1B visa fees would disproportionately affect companies that sponsor the largest number of visas. These organisations include major technology firms and large IT consulting companies, such as Amazon, Cognizant, Microsoft, Apple, TCS, Wipro, Intel, Infosys, Walmart, and many others.
These companies rely heavily on Indian tech talent to fill roles in software development, AI, and data science and such a move might pivot their hiring away from international recruitment and focus more on domestic talent pipelines, drastically impacting the Indian IT talent.
Industry body Nasscom said the US' move to raise the H-1B visa application fee to USD 100,000 will impact India's technology services companies, as business continuity will be disrupted for onshore projects that may require "adjustments".
Meanwhile, Commerce and Industry Minister Piyush Goyal will lead an official delegation to the US for trade talks on September 22, said a PIB release. "The delegation will take forward the discussions on the trade deal with an aim of reaching an early conclusion of a mutually beneficial trade agreement," it said.