Trump's H-1B Fee Hike: A Double-Edged Sword
The US President's decision to raise H-1B visa fees significantly impacts both American and Indian economies. This policy may propel offshoring by Indian IT firms, reduce local hiring in the US, and push India to utilize returning talent for boosting its digital sector.
- Country:
- India
The recent increase in H-1B visa fees, announced by US President Donald Trump, has sparked debate regarding its implications for both the United States and India. According to the Global Trade Research Initiative (GTRI), this move is poised to impact the US negatively rather than India.
Indian IT companies, which currently employ a significant percentage of local workers in the US, are likely to face increased costs, pushing them to offshore more jobs back to India. Ajay Srivastava, founder of GTRI, argues that this could lead to fewer H-1B visa applications and slower innovation in the US.
The change in visa policy is expected to be more burdensome for new applicants, and India is advised to leverage this shift by enhancing domestic capabilities in software and cybersecurity, as part of their broader digital 'Swaraj Mission'.
(With inputs from agencies.)
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- Ajay Srivastava
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