Domestic benchmark indices witnessed significant fall on Monday, primarily due to drop in IT stocks and overall negative sentiments despite the US clarification on H-1B visa fee and the GST 2.0 boost. Experts attributed it to Donald Trump’s decision to increase the H-1B visa fee to $100,000—a move that raised concerns about higher operational costs for Indian IT companies reliant on these visas.
Amid widespread panic, confusion and concern that gripped Indians in the US on H-1B visas after Trump signed the proclamation there was a clarification by the White House that the $100,000 fee was a “one-time” payment applicable only on new applicants. Notably, prior to the clarification by White House Press Secretary Karoline Leavitt, US Commerce Secretary Howard Lutnick said it would be paid annually and would apply to people seeking a new visa as well as renewals.
While the move was framed as a protectionist measure to safeguard American jobs in the tech sector, critics warned that it could disrupt global talent mobility and hit India’s IT industry hard. American lawmakers and leaders also termed the move “reckless”. Immigration attorneys and companies sounded the alarm for H-1B visa holders or their family members currently outside the US for work or vacation. Many H-1B visa holders cancelled travel plans at the last minute while waiting to board flights to the homeland and several others already in India scrambling to return, according to reports
India also warned of “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, after the initial declaration.
“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.
