Experts Warn About the Consequences of H-1B Visa Fee Hike

According to the Global Trade Research Initiative (GTRI), the decision made by President Donald Trump to raise the H-1B visa fee to $100,000 per worker is likely to hurt the US more than it does India. The institution stated that Indians who have established their IT firms in the US already employ 50-80% locals, which amounts to around 100,000. 

GTRI said, “So the measure won’t create many new jobs. Instead, it will make hiring Indians on-site costlier than hiring locals.” In general, a local IT manager with 5 years of experience earns around $120,000-$150,000 in the US. In contrast, a person on an H-1B visa will earn $96,000 to $120,000, and a person sitting in India will earn only $48,000 to $60,000 for the same job. However, with the new visa fee hike, companies will have to spend more to retain their Indian employee. 

Moreover, this will significantly alter the way firms get their work done. For most firms, the most logical way to navigate through their workload is by offshoring it to India. This means fewer H-1B visa applications, less local hiring, a higher cost of service for US clients, and slower innovation. So, the H-1B visa fee hike will create a lot more problems for the US. 

The Institution also stated that this will benefit India, as the returning diaspora will bring in expertise, enabling the country to leverage its talent domestically to develop capabilities in cybersecurity, cloud computing, and software development.