The new $100,000 H-1B visa cost from U.S. President Donald Trump is sending shockwaves around the world, and they are targeting the core of India’s software industry. The revelation has made things unclear for IT workers like Reshma Elizabath, who has been waiting for a job in the U.S. for more than two years. The new problem for her employer is whether or not to pay the high price for her three years at their U.S. headquarters.
The measure goes against the very heart of the economic paradigm that made India’s IT sector worth $245 billion. About 40–50% of mid-level engineers at big Indian companies have had an H-1B visa or want one, but the additional price could terminate that option. For thousands of professionals and their families in tech clusters across Tamil Nadu and Karnataka, the effect is very personal.
From panic to deep uncertainty
The initial fear among H-1B visa holders in the U.S. has calmed down since the White House made it clear that the charge only applies to new applications. However, the long-term effects are much worse. People who are planning their jobs, education, and futures around the U.S. IT industry are now the ones who are worried.
An IT worker in Porur named Anivar Aravind says that for many, this isn’t just a price rise; it’s the “death of the traditional onsite business model.” Middle-class families that have spent a lot of money on their children’s education and want to work in the U.S. share this feeling. Farmer Satheesh Kumar from Coimbatore and government teacher KV Mariyam from the Nilgiris both said they were worried about their sons’ plans to go to school and do Optional Practical Training (OPT) in the U.S. because they are now facing unforeseen costs.
Effect on Business and a Possible Bright Side
The policy is also developing a two-tiered system for enterprises. Bigger international companies might be able to handle the higher fees, but smaller businesses and startups are worried that they will have to stop doing business in the U.S. altogether. Mahesh Kapoor, the CEO of a firm in Bengaluru, said that the move would “hit the heart of India’s IT growth story.” This could cause talented people to leave the U.S. and move to other countries, such as Canada and those in Europe.
Some experienced people in the sector, on the other hand, see a possible benefit for India. Mohandas Pai, an experienced investor from Infosys, thinks that the fee increase will “speed up offshore delivery and grow India’s Global Capability Centers.” Kunal Bahl, who helped start Snapdeal, even thinks that there would be a “reverse migration,” which will bring more talent to India. He told the story of how he was turned down for an H-1B visa in 2007, which was “crushing” but eventually “life-changing” because it helped him start a successful business in India.
In the end, the new policy has caused a lot of people to be in a condition of professional and personal flux. P. Anuradha, an IT professional in Chennai, said that the mood in her office is “nervous,” with many wondering if their chances to learn and grow professionally in the U.S. are now closed.