The Global Trade Research Initiative (GTRI) has said that the United States’ decision to raise H-1B visa fees to USD 100,000 per worker will likely hurt America more than India. The move, announced by US President Donald Trump on September 19, is aimed at limiting foreign hiring, but experts believe it could backfire.
According to GTRI, Indian IT firms already employ 50–80% local staff in the US, accounting for around 100,000 Americans. Therefore, the new visa fee is unlikely to create significant job opportunities for US citizens. Instead, it will make hiring Indian professionals on-site costlier compared to hiring locals.
“Faced with this huge fee, firms will accelerate offshoring, doing more work remotely from India. That means fewer H-1B petitions, less local hiring, higher project costs for US clients, and slower innovation,” GTRI Founder Ajay Srivastava explained.
He highlighted the wage differences, noting that an IT manager with five years’ experience in the US earns between USD 120,000–150,000, while those on H-1B visas earn around 40% less, and employees in India earn nearly 80% less. With the sharp visa fee hike, offshoring will become even more attractive for companies.
Srivastava also suggested that India could turn this challenge into an opportunity. By leveraging the returning talent pool, the country can strengthen domestic capacity in areas like software development, cloud computing, and cybersecurity. “This protectionist move by the US could ultimately provide a long-term boost to India’s digital Swaraj Mission,” he said.
The White House clarified on Saturday that the new H-1B fee of USD 100,000 will apply only to new applicants. The proclamation signed by President Trump on Friday specifically targets visas used by companies to hire foreign workers, particularly from India, for jobs in the US.
Analysts believe that while the US intends to protect local jobs, the sharp rise in H-1B costs will instead increase project expenses for American clients and discourage innovation, with India standing to gain in the long run through accelerated offshoring.
