Trump’s $100,000 H-1B Visa Fee Hike Sparks Major Backlash in India and Tech Sector

By PaisaKawach Team | September 23, 2025

Trump’s $100,000 H-1B Visa Fee Hike Sparks Major Backlash in India and Tech Sector

Trump’s $100,000 H-1B Visa Fee Hike Sparks Outcry in India

September 23, 2025 — The Trump administration has triggered a global uproar by announcing a dramatic increase in the application fee for new H-1B visas, raising the cost to US$100,000 per petition. For India, the largest source of H-1B professionals, the move is being viewed as a direct hit on its tech sector and skilled workforce.

Understanding the H-1B Program

The H-1B visa program is a cornerstone of the U.S. economy, enabling companies to hire highly skilled foreign professionals in sectors like technology, healthcare, and research. Historically, Indian engineers and IT professionals have accounted for nearly 70% of all H-1B holders, fueling innovation in Silicon Valley and beyond.

India’s Strong Objection

India’s Ministry of External Affairs (MEA) quickly voiced concern and engaged in diplomatic talks with Washington. Officials highlighted the humanitarian impact of the decision, noting that families, careers, and long-standing U.S.-India ties could be disrupted if the policy remains unchanged.

“This decision is deeply concerning and risks undermining decades of collaboration between our nations,” said an MEA spokesperson during a press briefing.

Fallout for the Tech Industry

Indian IT giants such as Infosys, TCS, and Wipro, along with U.S.-based tech companies, have warned of significant disruptions. The steep cost may deter small and mid-sized firms from applying for visas altogether, leading to long-term workforce imbalances.

Potential Consequences

  • Increased outsourcing to India and other low-cost destinations.
  • Shift of skilled professionals toward Canada, the UK, and Australia.
  • Higher project costs for U.S. companies reliant on global talent.

Geopolitical Implications

The fee hike comes amid rising trade frictions between the U.S. and India, including tariffs on Indian exports earlier this year. Analysts say this latest move could deepen the diplomatic rift unless negotiations produce a compromise.

“The $100,000 fee is not just about money—it signals a closing of doors at a time when global economies need cooperation,” remarked an Indian IT industry veteran.

Looking Ahead

India is expected to push for sector-specific exemptions, particularly in critical areas such as artificial intelligence, semiconductors, and cybersecurity. Whether Washington softens its stance will likely shape the trajectory of U.S.-India business and diplomatic relations in the months ahead.

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Disclaimer: This article is based on publicly available information from various online sources. We do not claim absolute accuracy or completeness. Readers are advised to cross-check facts independently before forming conclusions.


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