Reading between the lines: The MEA statement underlines the importance of skilled talent mobility between India and the US, which has significantly contributed to technology development, innovation, economic growth, competitiveness, and wealth creation.
India has expressed concern over the United States’ new restrictions on the H-1B visa programme, saying that the move is likely to have “humanitarian consequences by way of the disruption caused for families.”
“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 MEA said, taking note of various reports and developments surrounding the issue.
India said that recognising the potential far-reaching implications of such a move, the matter is currently under thorough examination by all relevant stakeholders, including prominent voices from Indian industry. “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 said adding that “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”
“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,” it added.
Reading between the lines
Notably the statement underlines the importance of skilled talent mobility between India and the US, which has significantly contributed to technology development, innovation, economic growth, competitiveness, and wealth creation. Policymakers, it said, would need to assess the recent steps in light of mutual benefits and strong people-to-people ties.
The new restrictions come under US President Donald Trump’s latest executive action, signed on Friday, which imposes a $100,000 annual fee on companies hiring foreign workers through the H-1B visa programme. Given that nearly 70% of H-1B visa holders are from India, the measure is expected to disproportionately affect Indian professionals, particularly at entry- and mid-levels.
While the move has been framed as a protectionist measure to safeguard American jobs in the tech sector, critics warn it could disrupt global talent mobility and hit India’s IT industry hard.
However, some experts see potential upside for India.
The increased costs may push US companies to focus only on senior and highly specialised talent, reducing opportunities for junior professionals and possibly leading to a reverse brain drain, with skilled talent returning to India or seeking opportunities in countries with more favourable immigration regimes.
Indian IT majors such as TCS, Infosys, and Wipro, which have long relied on H-1B visas to place engineers at US client sites, may respond by accelerating offshoring of work to India and other locations. Industry leaders suggest this could strengthen India’s domestic tech ecosystem, spur innovation, and enhance global competitiveness.
