H1-B Visa Fee Hike Clarification: All Questions Answered! Will This Hurt US More Than India?

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00:00From Elon Musk to Satya Nadella, what's common between these top CEOs?

00:05Well, apart from tech, it's the visa that brought them into the US.

00:09In 1990, US introduced H-1B visas and bought in top brains from across the world to the US

00:16to innovate, lead and create companies that now shape the future of global tech.

00:22These visas were instrumental in building the Silicon Valley.

00:26However, Trump's one move this weekend came as a blow on those students and aspirants

00:32who wanted to secure a job at the top tech firms in the US with H-1B visa.

00:40US has now imposed a $100,000 fee on H-1B applicants.

00:46Now, this created a lot of panic and confusion among companies and they came out with advisory

00:51stating every visa holder should get back to the US before September 21st or they may

00:57have to pay a $100,000 fee, which could be impossible for many to come back to the US

01:05because of the flights and the travel time.

01:08However, US gave some clarification on this.

01:11So if you are having any queries or doubts about H-1B visa fee, this is the video for you

01:16as we answer all your questions.

01:18We also tell you why this is an economic disaster for the US.

01:26First, what is H-1B visa?

01:28It is a program that allows employers in the US to bring in temporary foreign workers in

01:34specialized fields and ones with advanced degrees.

01:38India is the largest beneficiary of H-1B visa.

01:41In 2024, it accounted for 71% of approved beneficiaries.

01:47Second, is this $100,000 fee an annual fee?

01:51As per the clarification from White House, it is a one-time fee that only applies to petition.

01:58Third, do the current holders have to pay $100,000?

02:02No.

02:02The ones who hold the H-1B visas already and are currently outside the US will not be charged $100,000 to re-enter.

02:12They can leave the country and re-enter as normal.

02:16Fourth, who does it apply to?

02:18The new fee is relevant only for new visas.

02:21Fifth, till what date is this fee valid?

02:24The fee is effective from September 21st, 2025 and valid for 12 months.

02:30Now, why was this implemented?

02:32The White House claims that American workers are being replaced with lower-paid foreign labor,

02:42creating quote-unquote economic and national security threat to the US.

02:48The statement claims that one company was approved for 5,189 H-1B workers in FI-25

02:55while laying off roughly 16,000 US workers this year.

03:00It gave another example of another company approved of 1,698 H-1B visas in FI-25 which laid off 2,400 US workers in July.

03:12It also claims that these American workers are forced to train foreign replacements under non-disclosure agreements.

03:21It says Trump wants to protect American jobs and workers from getting laid off and increase employment.

03:29No more will these big tech companies or other big companies train foreign workers.

03:35They have to pay the government $100,000, then they have to pay the employee.

03:39So it's just not economic.

03:41If you're going to train somebody, you're going to train one of the recent graduates

03:46from one of the great universities across our land, train Americans, stop bringing in people to take our jobs.

03:53The reaction was quick.

04:00India has hit back at Trump's new H-1B fee saying that it would have quote-unquote humanitarian consequences

04:08by way of disruption caused for families.

04:11The External Affairs Ministry in India in a statement said that it hopes that these disruptions

04:17can be addressed suitably by US authorities and emphasized that the exchange of skilled workers

04:24has contributed enormously to both countries.

04:29Commerce Minister Piyush Goyal has said, and I quote,

04:32that they are also a little afraid of our talent.

04:36We have no objection to that.

04:39So now who does it impact the most?

04:42IT companies in India with clients like Apple, JP Morgan, Walmart, Microsoft, Meta, and Google

04:51may be impacted.

04:52In short, tech giants like TCS, Wipro, Infosys, HCL Tech, and Tech Mahindra.

04:59These companies will be impacted.

05:01Shares of IT companies fell massively with Nifty IT Index plunging over 3% in early trade,

05:07dragging down benchmark indices lower.

05:10Worst hit were Tech Mahindra falling 6% in early trade.

05:14Mid-tier firms like Persistence Systems, LTI, Mindtree, and Emphasis also fell.

05:20IT stocks were already having a rough ride, and any small recovery has also been derailed

05:25by this policy shift.

05:27NASSCOM says that the move could potentially have ripple effects on America's innovation

05:34ecosystem and create considerable uncertainty for businesses, professionals, and students

05:40across the world.

05:42MK Global says that it could disrupt IT sectors' on-site offshore model, pressuring margins and

05:49supply chains.

05:50Legal experts say that this could face legal issues as well in the US.

05:56Meanwhile, as per a GTRI report, Indian IT firms already employ 50-80% locals in the US and

06:05about 100,000 Americans in total.

06:08It says that the measure won't create many new jobs, but instead, it will make hiring Indians

06:14on-site costlier than hiring locals.

06:17It says that it would increase offshoring and outsourcing work to Indians living in India

06:24at a much cheaper rate.

06:26This means fewer H-1B petitions, less local hiring, higher project costs for US clients,

06:34and slower innovation for America.

06:36It says that India must plan to benefit from the fee hikes using the returning talent to

06:42build domestic capacity in software, cloud, and cyber security, turning this into an opportunity.

06:50Overall, as per the report, Trump's order is likely to hurt US more than India.

06:55Some experts even called it an economic suicide for America.

07:00What do you think about this?

07:01Let us know in the comments and like, share, and subscribe to ETNOW for more such news and

07:05views.

07:06If you like this video, then like, share, and subscribe to ETNOW.

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