Trump Pulls Back on H-1B Visa Hike; Exemptions Likely for Key Workers (Social Media)
H-1B visa fees Updates:Amid the uproar in the US over the H-1B visa fee hike, the Trump administration has indicated that certain professionals, such as doctors, may receive relief in the national interest. Under the new rules, fees up to $100,000 will apply only to new applications.
H-1B visas are considered crucial for hospitals that rely on foreign doctors working in remote areas. These doctors play a significant role in the US healthcare system, as local specialists are often reluctant to work in these areas. The administration has stated that exemptions may be granted in such circumstances.
NASSCOM, the apex IT sector body, stated that Indian companies' reliance on H-1B visas has declined significantly in recent years. The number of visas issued to Indian companies in 2015 was 14,792, which dropped to 10,162 in 2024. NASSCOM believes that this change will not have a significant impact on IT companies.
NASSCOM clarified that the fee hike will not apply to existing visa holders. It will only apply to new applicants and will be effective from 2026. This will give companies time to strengthen local recruitment and skilling programs.
Indian companies have increased local recruitment in the US in recent years. The industry says they have already spent more than $1 billion on skilling and employment in the US. H-1B employees account for less than one percent of the total workforce at the top 10 Indian companies.
A Morgan Stanley report states that this decision will have little short-term impact on Indian IT companies. While challenges such as increased costs may arise in the medium term, existing projects will not be affected.
NASSCOM states that the movement of skilled talent is beneficial for both the US and India. This not only accelerates research and innovation of companies but also strengthens India's position at the global level.
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