First tariffs, and now the H-1B visa. US President Donald Trump's latest announcement is a second blow to America's relationship with India. Companies in the US will now have to pay a fee of USD 100,000 or approximately 88 lakhs for every H-1B visa. This will primarily impact Indians, as they have been one of the largest beneficiaries of H-1B visas, accounting for 71 per cent of approved visas in 2024. The Trump administration claims this fee is intended to ensure that individuals being brought into the country are "actually very highly skilled" and do not replace American workers.
"There Would Be No Silicon Valley"
Dr Michio Kaku, a globally renowned American theoretical physicist who called the H-1B a "genius visa," has termed Trump's move as devastating, warning that it could destroy the American scientific establishment. The Trump administration's latest decision could impact the innovation and growth of the US tech industry as it relies heavily on global talent.
“America has a secret weapon. That secret weapon is the H-1B. Without the H-1B, the scientific establishment of this country would collapse. Forget about Google or Silicon Valley. There would be no Silicon Valley without the H-1B visa. Do you know what the H-1B is? It’s the genius visa," Kaku can be heard saying in a video that is going viral.
However, this very decision could be a jackpot for India. How? Let's take a look.
Reverse Brain Drain
The Trump administration's decision to increase the H-1B visa application fee to USD 100,000 could lead to a reverse brain drain, as highly skilled professionals may return to India. Their talent could boost government initiatives, such as "Make in India."
Companies like Infosys, Wipro, and TCS, which previously focused on the US, could now prioritise building advanced facilities and innovation centres in India, leading to significant changes in our technology sector.
A reduced dependence on H-1B visas makes India a more attractive option for companies due to lower costs and a skilled workforce. This will create more opportunities for Indian professionals and attract additional foreign investment.
Strong Startup Ecosystem
India is the world's third-largest startup ecosystem, and Trump's announcement is expected to bring more opportunities. Highly skilled professionals returning home might choose to work for Indian startups or even start their own companies. This will boost local innovation and make it easier for Indian startups to attract foreign investment.
Global investors will now focus on India's startup ecosystem, recognising our ability to provide highly skilled services at a very low cost.
Next Wave Of Patents To Indian Cities
Reacting to the development, former NITI Aayog CEO Amitabh Kant said that the move will choke US innovation and turbocharge India's by pushing the next wave of labs, patents and startups to cities like Bengaluru and Hyderabad.
"Donald Trump's 100,000 H-1B fee will choke U.S. innovation, and turbocharge India's. By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon. India's finest Doctors, engineers, scientists, innovators have an opportunity to contribute to India's growth & progress towards #ViksitBharat," he said in a post on X.
According to Kant, America's loss will be India's gain.
