US move on H1B visa to have humanitarian consequences, full implications being studied: MEA

“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,” the statement said, adding, “Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward.”

The statement emphasised that skilled talent mobility has contributed to innovation and wealth creation in both the United States and India, and that policymakers will assess recent developments, ANI reported.

“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,” it said.

“This measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the US authorities,” the MEA added.

US President Donald Trump on Friday issued a new presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers”, introducing a major overhaul of the H-1B visa programme. The proclamation imposes a steep USD 100,000 annual fee on H-1B visa applications, raising questions about whether it is a necessary correction or a potentially crippling blow to America’s tech talent pipeline.

Set to take effect on September 21, the proclamation is among the Trump administration’s most aggressive efforts yet to reform the H-1B programme. Framed as a crackdown on “systemic abuse,” it places strict financial and compliance burdens on companies seeking to hire skilled foreign workers, particularly in the technology and IT sectors.

With 71–72 per cent of H1B visas going to Indians, the USD 100,000 annual fee effectively prices out many Indian professionals. This could significantly reduce remittances, which stood at USD 125 billion in 2023, affecting families and economies back home.

Indian IT giants such as Tata Consultancy Services (TCS), Infosys, and Wipro rely heavily on H1B visas. The new fee could cost these firms billions, potentially leading to reduced hiring or shifting jobs back to India.

H1B visas have long been a pathway for upward mobility for many Indian families, and the change could close this avenue, impacting social and economic progress.

Indian IT industry body Nasscom has expressed concerns over the US decision, calling the move potentially disruptive to global business continuity and the innovation ecosystem in the United States.

In a statement on Saturday, Nasscom said that while it is reviewing the finer details of the proclamation, such significant adjustments to the skilled worker visa programme could have far-reaching implications.

“Adjustments of this nature can potentially have ripple effects on America's innovation ecosystem and the wider job economy. It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India's technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments. Companies will work closely with clients to adapt and manage transitions,” the industry body said.

Nasscom further raised concerns about the timeline for implementation.

“The timeline for implementation (anyone entering the U.S. after 12:01 a.m., September 21) is also a concern. A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption,” Nasscom said.

Acknowledging the shift in global delivery models, Nasscom pointed out that Indian IT companies have been steadily reducing their dependence on the H-1B route by increasing local hiring in the US. It also defended the compliance and contribution of Indian firms to the US economy.

“These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups. The H-1B workers for these companies by no means are a threat to national security in the US,” the industry body said.

Nasscom reiterated the importance of high-skilled talent in maintaining America’s technological leadership, particularly as AI and other frontier technologies reshape global competitiveness.

“Nasscom has consistently emphasized that high-skill talent is vital to driving innovation, competitiveness, and growth for America's economy. This is especially critical at a time when advances in AI, and other frontier technologies are set to define global competitiveness. High-skill talent will remain central to sustaining America's innovation leadership and long-term economic strength,” it noted.

The industry body added that it will continue to monitor developments, engage with stakeholders, and seek further clarity on the discretionary waiver process to be granted by the Secretary of the Department of Homeland Security.

(With ANI inputs)

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