Editorial: Trump’s H-1B bombshell

The arbitrary and unreasonable hike in the visa fee to $1,00,000 would significantly impact the technology sector, which depends heavily on skilled workers from India and China

A broken system can be addressed in two ways. One, a meticulous, rigorous and pragmatic reform-based approach to fix it permanently. Two, an impulsive, shock-and-awe approach to create panic and confusion and play on public fears to peddle a false narrative of a dramatic resolution without actually doing anything. United States President Donald Trump belongs to the second category of leaders who seek personal glory in breaking the systems, rather than building them, and widening the gulf rather than bridging it. His latest proclamation raising the H-1B fee to a staggering $1,00,000 reflects a propensity to create chaos and unpredictability. In all probability, this move could be struck down by the courts because the US law generally permits visa fees to cover processing and adjudication costs, not to generate revenue. Understandably, Trump’s bombshell sent shockwaves among Indians working in the US on H-1B visas and fresh applicants. Utter chaos prevailed across several Indian cities as the visa holders on a visit to their hometowns scrambled to return to the US in a race against time to reach there before the Sept 21 deadline. India-born professionals are the biggest beneficiaries of these visas. Between October 2022 and September 2023, they accounted for 72 per cent of the nearly 4 lakh visas issued under the H-1B programme. During the same period, the top four Indian IT majors with a presence in the US —Infosys, TCS, HCL and Wipro— obtained approval for around 20,000 employees to work on H-1B visas, as per the latest US Citizenship and Immigration Services (USCIS) data.

While there can be no two opinions about the need to overhaul the H-1B visa system by eliminating the scope for manipulations and fraud and making it more merit-based, such sledge-hammer actions demonising Indian professionals would prove counter-productive. With their talent, hard work and high productivity, Indian workers have contributed immensely to the American economy and played a key role in its emergence as a global leader in technology and innovation. The arbitrary and unreasonable hike in the visa fee would significantly impact the technology sector, which depends heavily on skilled workers from India and China. In fact, the move is likely to hurt America more than India and stifle its culture of innovation. The hike could crush small businesses and startups reliant on diverse talent. It may drive skilled professionals to Canada or Europe, undermining America’s competitive edge. Faced with this huge fee, firms will accelerate offshoring, doing more work remotely from India. While the move is seen as a severe setback to the US-bound Indian professionals, it also presents a compelling counter-narrative: can we turn this adversity into advantage and the brain drain into brain gain? By fostering a supportive ecosystem, India can retain and attract talent, boosting domestic innovation and global competitiveness. This shift could transform India into a hub for tech advancements, rivalling Silicon Valley.

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