India said yesterday that the Trump administration’s move to increase US H-1B visa fees to $100,000 per year was likely to have humanitarian consequences, warning of potential disruptions for families.
India was the largest beneficiary of the US H-1B skilled worker visas last year, accounting for 71 per cent of approved applications.
Companies will now have to pay the new $100,000 per year fee, which took effect from early this morning. (0400 GMT today).
The move, announced on Friday, could further strain ties between India and the US, which hit their lowest point in decades after President Donald Trump last month doubled tariffs on imports from India to as much as 50pc, partly due to New Delhi’s purchases of Russian oil.
“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,” Randhir Jaiswal, spokesperson for India’s Foreign Ministry, said in a statement.
However, the move will not be applied to existing holders of valid visas re-entering the country, the Axios reported yesterday.
The White House clarified that the fee will not impact current visa holders re-entering the country or those renewing their visas, the Axios report said.
The new fee structure will first apply to the upcoming H-1B lottery cycle for new applicants, Axios reported.
Under the current system, entering the lottery for the visa requires a small fee and, if approved, subsequent fees can amount to several thousand dollars – just a fraction of the new price.
Trump has embarked on a wide-ranging immigration crackdown since taking office, including moves to limit some forms of legal immigration.
The step to reshape the H-1B visa programme, used heavily by the tech sector, represents his administration’s effort to rework temporary employment visas.
Jaiswal said the full implications of the fee increase were being studied by “all concerned”.
He said both United States and India benefitted from skilled worker mobility and their contribution to innovation, wealth creation and economic growth.
“Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries,” he said.
The significant hike in visa application fee could disrupt the global operations of Indian technology services companies that deploy skilled professionals to the United States, India’s IT industry body Nasscom said earlier in the day.
US companies such as Amazon and Microsoft have responded to the new fee structure announcement by advising employees holding H-1B visas to remain in the US.
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