India Examines Implications of US Hike in H-1B Visa Fees

New Delhi: India on Saturday said it is assessing the impact of the United States’ decision to raise the H-1B visa fee to $100,000 annually, a move the Ministry of External Affairs (MEA) warned could have “humanitarian consequences.”

“The government has seen reports regarding the proposed restrictions on the US H-1B visa program. The full implications are being studied by all stakeholders, including Indian industry, which has already issued an initial analysis clarifying certain perceptions related to the program,” the MEA said in a statement.

The ministry highlighted the longstanding collaboration between India and the US in innovation and skilled talent mobility, noting that such exchanges have “contributed enormously to technology development, innovation, economic growth, competitiveness, and wealth creation” in both countries. It added that policymakers will review recent steps considering mutual benefits, including the strong people-to-people ties between India and the US.

“The new requirement is likely to have humanitarian consequences by way of the disruption caused for families,” the MEA said.

Details of the US Proclamation

On Friday, US President Donald Trump signed a proclamation dramatically raising the annual H-1B visa fee from $1,000–5,000 to $100,000. The move is part of the administration’s broader efforts to tighten immigration rules and has been widely viewed as a major challenge to the H-1B program.

India, which accounts for 71% of H-1B visa holders, is expected to be the most affected. Currently, around 300,000 Indian professionals, primarily in the technology sector, are on H-1B visas in the US. Analysts note that the new fee exceeds the median annual salary of a first-time H-1B worker and over 80% of the average annual salary of all H-1B visa holders, effectively making the program inaccessible for most applicants.

Bilateral Context

The announcement comes amid heightened tensions in India-US relations. Earlier this year, the US imposed reciprocal tariffs of 25% on Indian goods, followed by an additional 25% levy tied to Russian oil purchases, bringing the total rate to 50%. However, recent interactions between Prime Minister Narendra Modi and Donald Trump on social media had signaled a potential thaw in relations.

Hours after Trump signed the H-1B proclamation, Prime Minister Modi, speaking in Bhavnagar, Gujarat, emphasized India’s focus on self-reliance, stating:

“The real enemy of the country is dependence on other countries.”

The MEA has reaffirmed that it will continue to examine the implications of the US move in consultation with Indian industry and other stakeholders.