New Delhi [India], September 21 : Former Indian diplomat KP Fabian termed the recent hike in H-1B visa fees by the United States as largely negative, noting that the measure has been modified to cover only fresh applications.
"The latest is that it has been modified. That is, it would apply only to fresh applications. Well, even there, it can be argued, and it has been argued, that it is cheaper to employ non-Americans than Americans. So, for positions where skilled Americans are available, there is some logic for it. But on the whole, the approach is quite negative," Fabian said.
Explaining the scope of the new conditions, Fabian clarified that current visa holders are not impacted. "As of now, those who hold an H-1B visa, whether in India or the United States, have not experienced any changes. It's only for those who will get it next year, October 2026; the conditions will apply," he noted.
He also reflected on India's position, stressing that the earlier proposal could have caused serious humanitarian issues. "Yes, India has said it is a humanitarian concern because this comment was made first before Trump changed his mind, because that would have, if the conditions had applied to those who hold H-1B visas now, that could have led to the separation of families," he explained.
While reiterating that the fee hike was "unjustified," Fabian pointed out that limiting its impact to new applicants showed that the US administration was receptive to pressure. "The whole thing is unjustified, but by confining it to new applicants, the administration has shown some sense because it came across opposition from the corporate companies and it had time to recognise its own mistake," he said.
Building on these concerns, the Indian government on Saturday said the full implications of the US decision to impose a USD 100,000 annual fee on H-1B visa applications are being studied by all stakeholders, including Indian industry, and noted that the measure could have humanitarian consequences by disrupting families.
In a statement regarding restrictions to the US H-1B visa programme, the Ministry of External Affairs underlined the shared interests of Indian and US industries. "The Government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program," the statement said.
It further emphasised the collaborative nature of the two economies. "Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward," it added.
Highlighting the role of skilled workers, the ministry stressed that such exchanges have been mutually beneficial. "Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India. Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries," the statement said.
The ministry also urged that the humanitarian aspects of the decision not be overlooked. "This measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the US authorities," it added.
The clarification came after US President Donald Trump on Friday (local time) signed an Executive Order raising the fee for companies sponsoring H-1B applicants to USD 100,000.
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