India has responded to U.S. President Donald Trump's administration hiking the price of skilled worker visas to $100,000.
On Saturday, India's Ministry of External Affairs warned that the move was "likely to have humanitarian consequences by way of the disruption caused for families."
The following day, Indian Minister of Commerce Piyush Goyal said the U.S. was "a little afraid of our talent."
U.S. President Donald Trump talks to the media before boarding Marine One on the South Lawn of the White House on September 21, 2025 in Washington, DC...Read More | Tasos Katopodis/Getty Images/Getty Images
Why It Matters
As figures in both the private and public sphere have noted, since its inception in the 1990s, the H-1B program has facilitated a significant transfer of talent from India to the United States, making sizable contributions to the American tech sector. Some have warned that the Trump administration's decision will limit the flow of foreign-born workers to the U.S. under the program and that both countries' economies will suffer as a result. However, critics of the program have long maintained that it is open to abuse and puts downward pressure on wages for American workers.
The announcement has also flared tensions between the U.S. and India, already strained over Trump's decision to hike the country's tariff rate to 50 percent because of its continued purchase of Russian Federation oil. The potential economic consequences of the measure—which limits India's access to its primary export market—sparked calls for a nationwide boycott of American goods and prompted the country's leadership to advocate for greater self-reliance.
What To Know
On Friday, the White House announced that applications for H-1B visas—which allow U.S. employers to temporarily hire foreign workers in specialized fields—must now be accompanied by a $100,000 payment to "curb abuses that displace U.S. workers and undermine national security."
Some 71 percent of H-1B recipients come from India, according to the United States Citizenship and Immigration Services, followed by China at 12 percent.
Employees entering the country through the visa program primarily support specialized sectors such as IT, software development and engineering. The largest H-1B employers in the U.S. as of late June were Amazon, with over 10,000 approved beneficiaries, followed by the Indian multinational Tata Consultancy Services, Microsoft, Meta, Apple and Google.
The announcement caused immediate confusion, with The Indian Express reporting a surge in last-minute flight bookings to the U.S. Meanwhile, Reuters reported that Amazon, Microsoft and JPMorgan were among the U.S. firms advising their foreign-born employees to remain in the U.S. or return before the order came into effect at 12:01 a.m. ET on Sunday.
The administration later clarified that the fee would apply only to new applicants, not current holders or renewals. Still, Indian officials and companies have taken serious issue with the move.
Revanth Reddy, the chief minister of the Indian state of Telangana, called Trump's decision "totally unacceptable in the historical context of Indo-American relationships."
Reddy called for the Indian government to "immediately set up a mechanism to resolve this amicably" and for Prime Minister Narendra Modi to do so "on a war footing."
Nasscom, India's leading IT trade body, said the change would "potentially have ripple effects on America's innovation ecosystem" and lead to "considerable uncertainty for businesses, professionals, and students across the world."
What People Are Saying
Madhavi Arora, the chief economist at Emkay Global Financial, wrote in a note cited by CNN: "Service exports have finally been dragged into the ongoing global trade and tech war."
Arora added that the move could "catalyze India's transformation into a more powerful global innovation and delivery hub."
India's Ministry of External Affairs wrote in a statement posted on X: "Industry in both India and the U.S. has a stake in innovation and creativity and can be expected to consult on the best path forward."
Gil Guerra, the immigration policy analyst at the Niskanen Center, told the BBC: "Since the latest White House directive indicates that the fee would only apply to new H-1B recipients, this is more likely to cause medium and long-term labor shortages instead of immediate disruption."
C. P. Gurnani, a former CEO of the Indian IT services firm Mahindra Satyam, told Bloomberg Television: "There is a shortage of STEM-skilled talent [in the U.S.], and when we send people on H-1B, we are only helping America. And we are making American companies more competitive."
What Happens Next
Indian tech stocks sank on Monday following the order, with Tata Consultancy Services down over 3 percent at the time of writing.
The move is likely to be a central topic in the upcoming meeting between U.S. Secretary of State Marco Rubio and Indian External Affairs Minister Subrahmanyam Jaishankar, which is set to take place on the sidelines of the United Nations General Assembly in New York on Monday.
On September 22, 2025, U.S. Secretary of State Marco Rubio met with Indian External Affairs Minister S. Jaishankar during the United Nations General Assembly. This meeting occurred shortly after the Trump administration announced a significant increase in fees for H-1B visa applications.
Key Changes Announced
New Fee Structure: A $100,000 fee will now be required for new H-1B visa applications. This change aims to address concerns about the displacement of U.S. workers and national security.
Impact on Indian Nationals: The fee hike disproportionately affects Indian nationals, who make up over 70% of H-1B visa holders. This has raised concerns about potential job losses and disruptions in the Indian tech sector.
Responses and Reactions
Indian Government's Stance: The Indian government has expressed concerns about the humanitarian impact of these changes, warning of possible disruptions for families and professionals.
Continued Engagement: Both Rubio and Jaishankar emphasized the importance of maintaining strong bilateral relations despite these tensions. They agreed to continue discussions on various issues, including trade and technology.
This meeting highlights ongoing challenges in U.S.-India relations, particularly regarding immigration policies that affect skilled workers.