US H-1B Visa Price Hike: How It Will Impression Indian Gen Z And Professionals | Evaluation


In a transfer more likely to ship shockwaves throughout India’s tech group and Gen Z workforce, U.S. President Donald Trump has authorized a pointy improve within the price for the H-1B visa program, elevating it from a earlier vary of USD 2,000–5,000 to a staggering USD 100,000 per applicant per yr, and the brand new coverage, which takes impact on September 21.

The choice, which is about to have an effect on 1000’s of Indian professionals yearly, has drawn widespread criticism from each inside the US and overseas. In right now’s DNA episode, Rahul Sinha, Managing Editor of Zee Information, analysed the US H-1B visa price hike and its impression on younger Indians: 

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What’s the H-1B Visa?

The H-1B visa is a non-immigrant program established in 1990, permitting U.S. corporations to rent expert overseas professionals in specialised fields like science, know-how, engineering, and arithmetic (STEM). Initially issued for 3 years, the visa will be prolonged to 6 years. Since 2004, the annual cap has been restricted to 85,000 visas, though precise issuances usually exceed this as a consequence of exemptions for sure establishments.

Within the 2022–23 fiscal yr, practically 386,000 H-1B visa functions have been authorized, with 72 % granted to Indian residents. Chinese language nationals have been a distant second at 12 %.

Who Will Be Affected?

The newly raised USD 100,000 visa price will reportedly apply solely to new candidates. Present H-1B visa holders will probably be exempt — until they’ve spent over 12 months exterior the U.S. In such instances, they have to return earlier than September 21 or doubtlessly be topic to the brand new price. 

This has triggered pressing measures from tech giants like Microsoft and Amazon, which have reportedly requested their Indian staff to return to the U.S. instantly.

Microsoft is alleged to have issued 24-hour return notices to Indian workers at the moment based mostly exterior the U.S., fearing pricey delays and unsure authorized interpretations as soon as the brand new rule kicks in.

Financial Fallout

The elevated value burden is anticipated to hit U.S. tech corporations the toughest, lots of whom rely closely on Indian professionals. On common, an H-1B visa employee earns USD 118,000 yearly — now practically matched by the visa price alone, elevating considerations over monetary feasibility.

Knowledge from the U.S. authorities exhibits that corporations like Amazon, Meta, Apple, Microsoft, and Google have been among the many largest beneficiaries of the H-1B program final yr. With the brand new monetary pressure, corporations could drastically cut back the variety of overseas staff they rent beneath this visa class.

Impression on India

This coverage shift poses each a problem and a possibility for India. The rapid concern is the potential disruption to just about 200,000 Indian professionals who yearly search employment within the U.S. It additionally threatens to have an effect on USD 236 billion in cumulative earnings based mostly on present wage averages. Concurrently, the current 50 % tariff by the Trump administration has put an estimated 20 lakh Indian jobs and USD 35 billion in annual exports in danger.

Nonetheless, it may be seen as a possible silver lining. With decreased U.S. alternatives, a “reverse mind drain” could happen, prompting proficient Indian professionals to return house and contribute to home industries, particularly in innovation hubs like Bengaluru, Hyderabad, Pune, and Gurugram.

Nonetheless, India faces its personal hurdles: insufficient infrastructure in Tier-2 cities, restricted R&D funding, and uncertainty round startup capital. Trump had already imposed a 50 % tariff on Indian exports in current months.

India’s Diplomatic Response

India’s Ministry of Exterior Affairs has responded by stating that the impression of Trump’s choice is beneath evaluate. 

The ministry emphasised the numerous contributions of Indian professionals to the U.S. financial system and expressed hope that the American administration will rethink or modify the choice to keep away from disrupting the lives of many households.

Authorized Challenges 

Very similar to a number of of Trump’s earlier immigration and commerce selections, this coverage too is more likely to face authorized scrutiny. Critics within the U.S. have in contrast the price hike to “safety cash”. Whether or not the brand new visa price survives judicial evaluate stays to be seen.