Tag Archives: H-1B visa fee hike

H-1B visa fee hike driven by Trump`s domestic politics: Tharoor

Days after United States President Donald Trump signed a proclamation mandating a USD 100,000 fee for each new H-1B visa petition filed after September 21, Congress leader and Member of Parliament Shashi Tharoor criticised the move, calling it an attempt to appease Trump’s “so-called MAGA” supporters, reported ANI.

Speaking to ANI on Monday, Shashi Tharoor stated that the sudden surge in H-1B visa fees is driven by domestic political considerations in the US. Trump aims to rally support from his anti-immigration base ahead of the upcoming US legislative elections scheduled for November. “Once again, the motivations are primarily rooted in domestic politics,” Tharoor said.

Trump believes—as those around him have convinced him—that the ease of obtaining an H-1B visa has allowed many American workers, who merit higher wages, to be overlooked in favour of Indians willing to work for less, Tharoor told ANI.

Linking the policy shift to broader political sentiment in the US, Tharoor noted, “At present, the dominant political current within the so-called MAGA movement is overtly anti-immigration, particularly targeting visible minorities—individuals of different ethnic backgrounds who are not part of the white mainstream.”

The former Union minister added that Trump’s supporters perceive Indian professionals as undercutting the wages of American workers by accepting lower pay. “An Indian tech worker earning sixty thousand dollars annually is, in the eyes of Trump’s backers, displacing an American who would refuse to work for anything less than eighty-five to ninety thousand dollars,” Tharoor explained, according to ANI.

He further stated that only the top-tier, highly skilled, irreplaceable professionals—those genuinely worth the hundred-thousand-dollar cost to employers—will continue to be brought in.

Tharoor also warned that this policy might ultimately harm the US economy. “The natural outcome will be job outsourcing. Tasks once performed in America will now be handled by multinational units in Europe or by global capability centres in India,” he said.

He pointed out that Indian tech professionals might still perform the same tasks for American firms, just remotely from India rather than from within the US.

Expressing concern for Indian IT firms, Shashi Tharoor emphasized that the steep visa fee structure could render many contracts financially unfeasible. “We simply cannot afford to pay one hundred thousand dollars per person for a low-end contract,” he remarked.

(with ANI inputs)
https://www.mid-day.com/news/india-news/article/us-h-1b-visa-news-h-1b-visa-fee-hike-driven-by-donald-trumps-domestic-politics-shashi-tharoor-23595399

Indian IT Firms Shielded From $100,000 H-1B Visa Fee Hike, Localisation & Offshoring Strategies Boost Independence

New Delhi: The impact of the H-1B visa application fee hike to $100,000 is expected to be limited on Indian IT services firms, given their reduced reliance on H-1B visas over the past decade through increased localisation and offshoring, a report said on Tuesday. However, the medium-term implications could be more pronounced.

The elevated cost of delivery in the US may lead to a structurally higher cost base, prompting firms to reassess their operating models and explore mitigation strategies, said a Franklin Templeton report. The extent of impact could vary depending on a company’s US exposure, onsite workforce mix, and reliance on non-local talent.

Historically, visa-related challenges have stemmed more from executive actions than legislative changes, with cost pressures already rising in earlier phases of visa tightening. Importantly, supply-side disruptions tend to be more damaging in high-growth environments—conditions that are not currently in play.

“As H-1B lotteries and petitions typically occur in Q4–Q1, the earliest material impact is likely to be reflected in FY27 petition cycles. In response, providers are expected to accelerate offshoring, expand nearshore operations in Canada and Mexico, pursue acquisitions in Europe and APAC to diversify geographically, and invest in automation and AI to enhance productivity,” the report mentioned.

These shifts are likely to make Global Capability Centres (GCCs) in India increasingly attractive to talent, especially as onsite opportunities decline and clients demand better rate realisation and efficiency gains.

India’s equity markets may experience some near-term volatility, but overall valuations remain broadly elevated versus historical averages. However, valuations for the IT sector have corrected in the last 6–12 months due to a weak demand outlook.

The outlook for overall corporate earnings in Indian markets is improving, supported by a recovery in domestic consumption and a gradual pickup in private sector capital expenditure.

“While global risks—such as US tariffs—pose short-term challenges for export-driven sectors, India’s macroeconomic fundamentals continue to be resilient,” said the report.

Looking ahead, the potential conclusion of a trade agreement with the US in the second half of 2025, combined with strengthening domestic demand and improving earnings visibility, could act as positive catalysts for the market over the coming quarters, it added.

*Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.*
https://www.freepressjournal.in/business/indian-it-firms-shielded-from-100000-h-1b-visa-fee-hike-localisation-offshoring-strategies-boost-independence