US H-1B Visa Fee Hike: Impact on US & India

New Delhi, Sep 21 (PTI) A decision of the US President Donald Trump to raise H-1B visa fees to USD 100,000 per worker is likely to hurt America more than India, think tank GTRI said on Sunday.

It said that Indian IT firms already employ 50-80 per cent locals in the US, about 100,000 Americans in total.

"So the measure won't create many new jobs. Instead, it will make hiring Indians on-site costlier than hiring locals," the Global Trade Research Initiative (GTRI) said.

Explaining further, it said, an IT manager with five years' experience earns USD 120,000-150,000 in the US, versus 40 per cent less on H-1B and 80 per cent less in India.


"Faced with this huge fee, firms will accelerate offshoring, doing more work remotely from India. That means fewer H-1B petitions, less local hiring, higher project costs for US clients, and slower innovation," GTRI Founder Ajay Srivastava said.

He added that India must plan to benefit from fee hikes by using the returning talent to build domestic capacity in software, cloud, and cybersecurity -- turning a US protectionist step into a long-term boost for India's digital "Swaraj Mission".

"President Trump's September 19 decision to raise H-1B visa fees is likely to hurt the US more than India," he said.

President Donald Trump on Friday signed a proclamation raising the fee on the visas used by companies to hire workers, including from India, to live and work in the US.

The H-1B visa fee of USD 100,000 would be applicable only to new applicants, a White House official clarified on Saturday.