High cost for America: Amitabh Kant believes Trump's $100,000 H-1B visa fee could hinder growth in Bangalore, Hyderabad, Pune, and Gurgaon (Indian cities)
In a move that could reshape the global tech landscape, former U.S. President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applications. The order, effective starting September 21, 2025, targets the information technology sector, particularly critical science, technology, engineering, and math (STEM) fields.
The fee does not affect those already in the U.S. on H-1B, but it concerns employees working outside the U.S. Major tech companies like Amazon, Microsoft, and Meta are expressing worry about potential chaotic situations for their international skilled workers.
Amitabh Kant, the former CEO of NITI Aayog, has stated that the decision would slow down the U.S. economy and boost growth in India. He claims that the new policy would choke US innovation and turbocharge India's progress. According to Kant, the next wave of labs, patents, innovation, and startups will be pushed to cities like Bangalore, Hyderabad, Pune, and Gurgaon in India.
Kant further asserted that as a result of the new policy, India's finest doctors, engineers, scientists, and innovators would have an opportunity to contribute to India's growth and progress towards the dream of Viksit Bharat. He believes that the decision would push skilled workers to India, providing a significant boost to the nation's economy.
The executive order accuses companies of using the H-1B visa route to replace American workers with cheaper foreign labor. It cites rising unemployment among U.S. computer science graduates, mass layoffs tied to H-1B hiring, and national security risks as reasons for the fee increase.
However, as of now, no specific companies in the U.S. have ordered their employees to return to the U.S. within a Sunday deadline due to the H-1B visa fee increase. The top IT companies have asked their employees to return to the U.S. by Sunday due to the new executive order, but there have been no reports of mass returns yet.
The order also directs higher prevailing wage levels and prioritizes high-paid, highly skilled workers, which could potentially attract more high-value talent to the U.S. Nevertheless, the overall impact of the fee increase on the tech industry and the U.S. economy remains to be seen.
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