H-1B Visa Fee Hike Shakes India – What are the effects on India and the USA

On a quiet morning, thousands of Indian tech professionals woke up to a headline that felt like a punch to the gut: the US government had imposed a $100,000 annual fee on H-1B visa holders. No warning. No grace period. There was only a one-day window to re-enter the country before the fee took effect. This situation shook the entire job seekers from India. For many, the American Dream didn’t just dim — it slammed shut.

President Donald Trump is continuously taking bigger steps against India, only to sour the relationship. The President is ensuring the benefit of the USA, its GDP, and its businesses. Being self-centred is perfectly fine because, in politics, everyone sees their country’s interests. Ironically, when other countries see their benefits, Trump becomes nervous.

President Trump is imposing new ‘Sanctions’ against India that include 50% tariffs. It has been a history of the USA to support Pakistan, and now, the new rule, the ‘H1B visa’. Please read articles on what a tariff war is and its effects, below-

1. What Is a Tariff War? – PolyBlogger.com
2. Effects of ‘Tariff War’ on the USA Itself – PolyBlogger.com
3. TRUMP’S TARIFF WAR: IS “MAKE AMERICA GREAT AGAIN” REALLY WORKING? – PolyBlogger.com

Initially, it appears to be a slam on India, but the USA may eventually put itself in trouble. Let’s examine why the USA will also face a massive hit.

One thing shines brightly now –

Double Standards of the World’s Biggest Economy – PolyBlogger.com

The new H-1B visa policy isn’t just a policy change. It’s a tremor-like shift in how talent flows across borders, how they drive innovation, and how they capitalize on their dreams.

For Indian Aspirants: A Dream Deferred

For decades, the H-1B visa has been a lifeline for Indian engineers, designers, data scientists, researchers, and other professionals seeking employment opportunities in the United States. That doesn’t mean the opportunities aren’t available in India at all. Still, India experiences a brain drain for several reasons. The article below provides an overview of the reasons behind brain drain.

🚀 Brain Drain in India: Why Bright Minds Leave and What It Says About Indians – PolyBlogger.com

It’s been the bridge between –

• IITs (Indian Institute of Technology), IIMs (Indian Institutions of Management) and Silicon Valley
• ambition and opportunity,
• creativity and resources,
• knowledge gap and knowledge,

But with the new fee of $100,000 (Nearly Rs. 90,00,000 or Rs. 9 million), that bridge now has a toll booth that few can afford to cross. This is the fee that either the individual or their company must pay. It’s hard for an employee to bear this cost.

Even if companies are paying this high fee, they must pay for other expenses as well, like air travel tickets, accommodation if any (temporary or permanent), wages, perks, incentives, other employee benefit programs such as meals, outings, dinner/lunch, weekly lunch, annual day programs, etc. The expenses are too high for any company, even if it can afford them.

Who is hit the hardest by this decision?

Early-career professionals are the hardest hit. Fresh graduates from Indian universities, even with stellar resumes, now face a financial barrier that makes US jobs nearly inaccessible.

Many H-1B visa holders who travelled to India for weddings, funerals, or festivals now scramble to return before the fee activates — or risk losing their jobs.

Mental health toll is real. The uncertainty, the suddenness, and the sheer cost have left many feeling stranded, anxious, and betrayed by a system immigrants trusted. Now the world wonders whether the USA is still a reliable partner.

The H-1B visa rules aren’t just about money. It’s about dignity, stability, and the emotional cost of being treated as a transactional asset.

For the US Government: An opportunity for increased native jobs and retain money

With a very high debt on its head and widespread public anger about jobs going to foreigners, the USA had to make some decisions, whether necessary or not.

Regardless of what different countries think about him, his country is his priority. He aims to curb the outflow of money through various measures, including tariffs on foreign goods, restrictions on hiring foreign employees, and increased sales of defense equipment.

What he is probably ignoring is –

1. The reliability of the USA in the world
2. The relationships with the countries
3. The economic impact in itself
4. Every country has its own choices, just like America.
5. A long-term image of the USA is at risk, as Trump may leave politics, and the country and its image, which the President has ruined, will remain forever.
6. The power of technology will shift from Western to Eastern countries
7. The technology sector will likely take a significant hit, and Silicon Valley may reflect this in its upcoming financial results.
8. If Asian and BRICS giants start using their own currency because the US government policies are frustrating with unlawful, unnecessary sanctions and bad behaviour, the demand for the Dollar will fall by 45-50% and the image will collapse by 100%

The President is forcing the world to undergo a transition that may be worst for the USA but is best for the world. Donald Trump is preparing for a US economic funeral, unknowingly.

Trump is doing all of these because Russia is at war with Ukraine, and China is now an economic and manufacturing global power, and the USA want to control it. India is rising and fulfilling its oil needs from Russia, as well as its defense needs from Europe, particularly from France and Germany.

Trump is probably upset because India is not buying defense equipment from the USA. India is clear in its requirement. It requires technology transfer, localized production, or the integration of local components, or a combination of these approaches. It entirely depends on the defense ministry’s plan.

Additionally, India requires cost-effective and beneficial equipment that offers long-term benefits, along with minimal maintenance costs and lower operational expenses. America may not fit in all or some of these criteria. So, India is not purchasing it.

For US Companies: Innovation Under Siege

The fee isn’t just a burden on individuals — it’s a toll tax on innovation.

• Big Tech Bleeds Billions: Companies like Amazon, Google, and Meta employ thousands of H-1B workers. The new fee could cost them billions (even if it is a one-time fee). Cost will eventually force them to make painful decisions about layoffs, outsourcing, or automation. The US government clarifies that this fee is only applicable to new applicants and is a one-time charge. It is not a yearly fee and does not apply to individuals who already hold an H-1 B visa. Now, big tech companies say that for them, this cost is just 1%. But what about those that are smaller companies?
• Startups Retreat: Smaller firms, already stretched thin, may abandon H-1B sponsorships entirely. That means fewer diverse voices in product design, fewer global perspectives in problem-solving.
• Remote Work Rises: Ironically, the fee may prompt companies to do precisely what the policy aims to prevent —move jobs offshore. Expect a surge in remote hiring. Companies may still tap Indian talent — but from India, not California. The US loses the cultural and economic benefits of immigrant presence, creating a racist environment and human rights issues.
• Hire Act: Currently, the USA is developing the Hire Act, which aims to prevent the outsourcing of jobs and create more opportunities within the country. Now this will significantly increase the cost of the companies. For the same outsourced job, companies may pay three or more times the wages paid to outsourced workers. If the company continues to outsource its requirements, the US government will likely impose additional taxes through the upcoming HIRE Act. In other words, any company that chooses either option will face a financial burden. Additionally, these companies are uncertain about the quantity and quality of workers they will receive within the country.

For India: A Strategic Crossroads

India stands at a crossroads. It entirely depends on how India perceives it: as a challenge and an opportunity or a punishment.

• Diplomatic Pressure Builds: Bilateral talks between Indian officials and US delegates are intensifying to negotiate exemptions or push back diplomatically. However, the unusual comments and tweets from President Donald Trump are affecting the talks, giving opportunities to countries like China.
• Domestic Ecosystems Strengthen: With fewer numbers of Indians heading to the US, domestic tech hubs such as Bengaluru, Hyderabad, and Pune may experience a talent boom. Indian startups could benefit from a reverse brain drain. Some of India’s startups may outperform some of the world’s tech giants. This scenario will provide an opportunity for India to reflect on its own strengths and accelerate its self-reliant policy.
• Policy Recalibration: Indian IT giants like Infosys and TCS may pivot toward local hiring in the US or increase their investment in offshore delivery models.

India must now decide: does it fight for access to the US, or build a future where it no longer needs it? However, it is also true that the Trump administration will not last long. With the new government, there are hopes for improving bilateral trade negotiations.

It is also true that in Politics, no one is a permanent enemy or a permanent friend; it is all about selfish motives.

Niche Effects: The Quiet Collateral Damage

Beyond headlines and boardrooms, the fee hike has subtle, far-reaching, and heavy consequences.

• STEM Education Loses Appeal: STEM stands for Science, Technology, Engineering, and Mathematics. Indian students may rethink US universities as a pathway to employment. In fact, many have already been denied admission to American Universities for higher studies. They are searching for options of European or Australian Universities. Such a drop in candidature could harm American institutions financially and culturally, as Canadian universities are also affected.
• Green Card Bottlenecks Worsen: Many H-1B holders are stuck in multi-year queues for permanent residency. The fee adds insult to injury, making long-term planning nearly impossible.
• Cultural Isolation: Indian communities in the US may shrink or become more homogeneous, as fewer new immigrants arrive and existing ones reconsider their stay. Already, Americans are insecure about the job opportunities, and in many places, rioters chanted slogans asking Indians to go back. At the same time, they are fine with Europeans, Chinese, or Australians taking their jobs. Isn’t that a pure case of racism?

These effects won’t show up in GDP charts, as they are not measurable unless studied in depth—but they’ll shape lives, families, and futures.

The Bigger Picture: What Kind of country does America want to be?

At its core, this policy forces a question: what kind of country does the US want to be?

• A fortress that prices out global talent?
• Or a beacon that welcomes the best minds, regardless of origin?
• Do they wish only to make profits without expenses, which is not possible?
• Are the majority being racist, that they started chanting only Indians to go back?

The H-1B visa has always been more than paperwork. It has been a symbol of meritocracy, possibility, and shared progress. This fee risks turning that symbol into a paywall.

Reason USA is sanctioning various countries, and the myth behind it

President Donald Trump is a wise businessman; he knows how to profit his country. He is doing all these to profit the USA.

Below are some of the reasons why the President is taking such extreme steps –

1. He wants to stop the Russia-Ukraine war. He assumes India is supplying monetary support to Russia, which is fueling the war. He is deliberately ignoring what trade Europe, China, and the USA itself are doing with Russia.
2. He wants to take credit for stopping the India-Pakistan escalation by faking a tweet. It is proven later that he was lying.
3. He wants the Nobel Prize for no reason. His government eliminated key persons all over the world (for example, the Iranian army chief), bombed regions, and supported the terrorist country of Pakistan. His deep state is creating problems at multiple places, including India, which the Indian government has mentioned many times, but the US government denies it. And he thinks he deserves a Nobel prize?
4. Very High debt, which President Donald Trump wants to reduce by stopping the countries from earning through the USA, and he wants to retain the money outflow. He also wants to boost the local production and sales by imposing tariffs on imported goods.
5. The internal US government has revealed that Donald Trump, his family, and friends are making substantial profits through his decisions and policies.
6. He wants America to be great again, and he believes these steps will achieve that goal.
7. USA, as always, wants to control the whole world through Dollar transactions, sanctions, military power, NATO power, UN power, money power, power of alliances, etc.
8. The USA wants to tackle the ‘China problem,’ but the more it puts sanctions on other countries, the closer those countries will go to China. China wants this to happen to reduce the USA’s importance in the South Asian region.

So, we can conclude that, for whatever reason, he is imposing sanctions, all of which are myths and may backfire. The history witnesses the failure of the USA in controlling Vietnam, the Mexican drug cartels, and the Middle East region and now, recent India.

Conclusion: What Comes Next?

• Legal Challenges: Expect lawsuits from tech firms and advocacy groups. The honourable court may not agree with the abruptness and unrealistic scale of the fee.
• Policy Reversals: If political winds shift, the fee could be rolled back or modified. But for now, uncertainty reigns.
• Global Talent Shuffle: Countries like Canada, Germany, and Singapore may benefit, offering smoother paths for skilled immigrants.
• Small Techies: Small Tech companies and startups are the most severely affected, as they cannot afford the talent, despite foreign labour sometimes being found cheaper.
• Who are Safe: Already holders of H-1B, healthcare sector (because the USA needs them).
• New rules for H-1B distribution: The rules governing the distribution of H-1B visas are set to change. Now, the US government will offer the H-1B visa only to highly skilled workers and those in high-paying jobs, unlike the previous lottery system. Therefore, if a job seeker is semi-skilled or unskilled, their dreams will fade away until a mutually beneficial solution to the situation comes into picture.

The world is watching. And so are the dreamers.