"Does not send very reassuring message...damaging for American economy": ORF VP on H1B visa curbs

New Delhi [India], December 25 : Harsh V Pant, Vice President of the Observer Research Foundation (ORF), on Wednesday discussed US' scrapping of H1B visa lottery, expected to significantly impact Indian professionals, who account for over 70% of H-1B visa applicants.

The new system, effective February 27, 2026, aims to curb abuse of the program and protect American workers, but critics argue it may limit opportunities for skilled Indian workers.

Speaking to ANI, Pant highlighted that the Trump administration's decision has raised concerns about the US's talent pool and its ability to serve industry. Many American corporations have expressed concerns about the lack of skilled workers, and the new rule may exacerbate this issue.

"There are two issues here. One: whether America has an adequate talent pool to serve its industries. And I think many American corporate heads and private-sector leaders have expressed this: America doesn't have enough talent pool. Therefore, they need Indians, for example, to continue to feed into that pool," he said.

The US has scrapped the H-1B visa lottery system, replacing it with a wage-weighted selection process that prioritises higher-paid and highly skilled foreign workers.

Pant said that $100,000 fee for new H-1B visa applications will add to the financial burden on Indian professionals and companies. While large multinational corporations may absorb these costs, smaller firms and startups may struggle, potentially reducing their access to global talent.

"And I think for political reasons, the Trump administration has made this a big, big deal that they are cutting down not only on the numbers but also on what kind of talent they want, they, highly paid, highly skilled workers, which is, of course, any nation's right to decide what kind of immigrants they want. But in the context of the American economy, certainly in the short to medium term, it's going to have a damaging impact because the talent pool is not available," he said.

Indian IT companies, which have historically relied heavily on H-1B visas, may need to adapt their strategies to focus on offshore delivery, automation, and local hiring in the US. The impact on India's IT sector could be significant, with potential ripple effects on the country's economy.

"And I think it also sends out a wrong message in India-US relations, insofar as the Indians that form the largest group when it comes to H-1B visas are being targeted specifically. I think, in the broader context of how delicate India-US ties have become, this does not send a very reassuring message. But in the short to medium term, this is also damaging for the American economy," he said.

According to the proclamation issued by US President Donald Trump on September 19, there will now be a USD 100,000 fee for new H-1B visa applications.

According to the US State Department, the new fee requirement applies only to individuals or companies filing new H-1B petitions or entering the H-1B lottery after September 21.

Current visa holders and petitions submitted before that date remain unaffected. Under the proclamation, a USD 100,000 fee must accompany every new H-1B visa petition filed after the deadline, including those submitted for entry into the 2026 lottery.

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