The Indian government on Saturday expressed deep concern over U.S. President Donald Trump’s proclamation imposing a staggering $100,000 annual fee on H-1B visa applications, a move that threatens to disrupt the flow of skilled Indian workers to the United States and spark legal challenges.
India’s Ministry of External Affairs said the measure “is being studied by all concerned, including Indian industry” and warned that it could create humanitarian consequences for families of visa holders. “The government hopes that these disruptions can be addressed suitably by the U.S. authorities,” the ministry stated.
More than 70 percent of H-1B visa holders are from India, making the policy particularly impactful for the country’s IT sector and its major outsourcing firms, including Tata Consultancy Services, Infosys, Wipro, and HCL Technologies, which depend on the visas to staff U.S. projects.
The new fee — up from $215 — will take effect at 12:01 a.m. ET Sunday and apply for one year, though it could be extended if deemed “in the interest of the United States.” Trump also unveiled a $1 million “gold card” visa with a path to citizenship and a $5 million “platinum card” visa, the latter requiring congressional approval, as part of what the White House calls a sweeping reset of America’s immigration priorities.
Commerce Secretary Howard Lutnick said the fee increase will sharply reduce the number of H-1B visas issued, arguing that companies should “train Americans” instead. Critics, including the U.S. Chamber of Commerce, warned of severe consequences for employers and workers, saying the abrupt change could upend the tech industry’s hiring pipeline.
Economists and immigration experts say Trump’s unilateral proclamation may not survive legal scrutiny. Michael Clemens of George Mason University called the move “poisonous and irresponsible,” accusing the president of sidestepping Congress and destabilizing millions of families and employers.
The measure comes at a time when India and the United States are seeking closer strategic and economic ties, raising questions about its potential impact on bilateral relations. Analysts say the policy could prompt Indian IT giants to accelerate hiring at offshore delivery centres and explore alternative markets.
With the H-1B program historically serving as a gateway for Indian tech talent to gain U.S. work experience, the decision has sent shockwaves through India’s technology sector, which contributes billions annually to the U.S. economy.