New Delhi [India], September 22 (ANI): The United States’ recent decision to impose a steep increase in H-1B visa fees has sparked concerns across Indian industries. However, banking and market expert Ajay Bagga believes the move could help curb India’s brain drain.
Speaking to ANI, Bagga said the USD 100,000 fee for H-1B visas would encourage India to find alternative avenues to productively employ its skilled workforce. “Brain drain will reduce, and India will have to find other avenues or productively use these people. This will be an objective for the government too,” he noted.
Bagga highlighted the widespread reliance on H-1B visas across sectors. “There are approximately 16,000 Indian-origin doctors working in rural areas in the US. Wide regions in the US are benefiting from H-1B visas,” he said. In the IT sector, major companies employ between 5,000 and 10,000 workers on H-1B visas, which could prompt firms to outsource work to other regions.
He further noted that the impact would extend beyond IT, affecting healthcare, financial services, and other industries that rely on foreign skilled workers.
The H-1B fee hike, announced by US President Donald Trump, is intended to curb perceived overuse of the programme and prioritize highly skilled foreign workers, while creating and protecting jobs for American employees. Bagga pointed out that the fee could result in additional costs of up to USD 14 billion for companies if the current run rate of H-1B visa approvals continues.
“Beneficiaries of this rule will be offshore centres like Vancouver and other nearby countries,” Bagga added, as companies may seek more cost-effective alternatives to manage operations.
US Commerce Secretary Howard Lutnick earlier explained that the measure is part of a strategy to discourage the use of H-1B visas for positions considered training roles. The sudden jump from a few thousand dollars to USD 100,000 marks a significant shift in the cost of hiring foreign talent. (ANI)
About The Author
