'Full Implications Are Being Studied', Says MEA Citing 'Humanitarian Consequences' of Proposed Restrictions on US H1B Visa Program

The Ministry of External Affairs (MEA) stated that the concerned departments, including Indian industry, are studying the full implications of the proposed restrictions on the U.S. H-1B visa program. The ministry expressed hope that the U.S. authorities would address the disruptions caused to families as a result of these restrictions.

"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," MEA spokesperson Randhir Jaiswal said in a statement.

“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. 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. 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,” the statement read.

US President Donald Trump's order mandates companies to pay USD100,000 annually for H-1B visa petitions, aiming to curb perceived abuses and prioritise American workers. US President Donald Trump's residential proclamation titled "Restriction on Entry of Certain Nonimmigrant Workers" imposed a USD 100,000 annual fee on H-1B visa applications.

Trump's order may impact Indians as they comprise about 70% of H-1B visa holders, making them significantly affected by this policy shift.

The steep fee may deter companies, especially smaller ones, from sponsoring foreign workers and could push Indian talent toward alternatives like Canada or Europe. 

The measure, effective from September 21, aims to combat what the administration calls widespread abuse of the H-1B programme, particularly by IT outsourcing firms accused of displacing American workers and suppressing wages.

As of FY 2024, over 71 per cent of all H1B visa holders were born in India, with 283,397 people getting approved under the H1B programme, according to the US Citizenship and Immigration Services (USCIS). People whose country of origin is China are the second most beneficiaries of the H1B scheme, with 12 per cent of all beneficiaries.

In 2023, the USCIS received a record number of applications across all visa application categories, with over 10.97 million applications received in total, up by 21 per cent (9 million applications) in FY 2022. The USCIS completed over 10.8 million applications. Out of the total number of applications, the US approved 396,500 applications for H1B petitions across all countries. H1B applications comprise the largest share of non-immigrant worker petitions in US.

According to the US agency's Employer Data hub, H1B visa holders mostly work in the IT sector, with Amazon having the largest number of beneficiaries with 10,044 people. Tata consultancy services, Microsoft, and Meta also have more than 5 thousand H1B visa holders as employees.