India has pushed back sharply at the United States’ decision to impose a $100,000 fee on new H-1B visa applications for skilled foreign workers, calling the move a sign that the U.S. is “afraid” of Indian talent. The fee, introduced by President Donald Trump, has drawn stern criticism from Indian officials, who warn of possible humanitarian and economic consequences.
The U.S. says the new fee is intended to curb misuse of the visa system, particularly by companies allegedly using H-1B visas to undercut domestic wages and outsource jobs. India, which accounted for a large majority of H-1B visa holders in 2024, rejects these claims, asserting that skilled Indian professionals have made positive contributions to both nations.
India’s External Affairs Ministry cautioned that the fee rise could disrupt families, leading to uncertainty for workers and their loved ones. Commerce Minister Piyush Goyal added to the rhetoric, stating that the U.S. appears to be “a little afraid of our talent.” He called for dialogue, not confrontation, but made it clear that India will defend the interests of its professionals.
The policy has already sent shockwaves across the tech sector. Major Indian IT firms saw their share prices drop in the wake of the announcement. Companies in sectors heavily reliant on H-1B visas—including information technology and engineering—are assessing how the new costs will affect hiring strategies. Industry bodies have expressed anxiety over the uncertainty the fee hike introduces, especially among smaller players less able to absorb such large expenses.
While the U.S. clarified that the $100,000 fee applies only to new visa applications—not renewals or existing holders—some confusion and panic have already been reported. Immigration lawyers in India say they have been inundated with questions as workers worry about travel plans, visa status, and the viability of U.S. job prospects.
Students interested in studying in the U.S. are also reevaluating their options. Many say the increased fee, alongside broader immigration shifts, may push them to consider education and work opportunities elsewhere.
For now, India is taking a firm but measured stand—emphasizing the mutual benefits of skilled migration, and warning that policies that seem to penalize talent could backfire on both sides. The coming weeks are likely to see diplomatic engagements, industry responses, and possibly legal challenges as the full fallout from this fee hike becomes clearer.
