US move on H1B visa to have humanitarian consequences, full implications being studied: MEA

The government on Saturday said that the full implications of the US decision to impose a USD 100000 annual fee on H1B visa applications are being studied by all the stakeholders including the Indian industry reported news agency ANI The move the Ministry of External Affairs MEA noted is likely to have humanitarian consequences due to the disruption it may cause for familiesIn a statement on restrictions to the US H1B visa programme the MEArsquos official spokesperson said that industry in both India and the US has a stake in innovation and creativity and is expected to consult on the best way forwardldquoThe Government has seen reports related to the proposed restrictions on the US H1B visa program The full implications of the measure are being studied by all concerned including by Indian industry which has already put out an initial analysis clarifying some perceptions related to the H1B programrdquo the statement said adding ldquoIndustry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forwardrdquoThe statement emphasised that skilled talent mobility has contributed to innovation and wealth creation in both the United States and India and that policymakers will assess recent developments ANI reportedldquoSkilled talent mobility and exchanges have contributed enormously to technology development innovation economic growth competitiveness and wealth creation in the United States and India Policy makers will therefore assess recent steps taking into account mutual benefits which include strong peopletopeople ties between the two countriesrdquo it saidldquoThis measure is likely to have humanitarian consequences by way of the disruption caused for families Government hopes that these disruptions can be addressed suitably by the US authoritiesrdquo the MEA addedUS President Donald Trump on Friday issued a new presidential proclamation titled ldquoRestriction on Entry of Certain Nonimmigrant Workersrdquo introducing a major overhaul of the H1B visa programme The proclamation imposes a steep USD 100000 annual fee on H1B visa applications raising questions about whether it is a necessary correction or a potentially crippling blow to Americarsquos tech talent pipelineSet to take effect on September 21 the proclamation is among the Trump administrationrsquos most aggressive efforts yet to reform the H1B programme Framed as a crackdown on ldquosystemic abuserdquo it places strict financial and compliance burdens on companies seeking to hire skilled foreign workers particularly in the technology and IT sectorsWith 71ndash72 per cent of H1B visas going to Indians the USD 100000 annual fee effectively prices out many Indian professionals This could significantly reduce remittances which stood at USD 125 billion in 2023 affecting families and economies back homeIndian IT giants such as Tata Consultancy Services TCS Infosys and Wipro rely heavily on H1B visas The new fee could cost these firms billions potentially leading to reduced hiring or shifting jobs back to IndiaH1B visas have long been a pathway for upward mobility for many Indian families and the change could close this avenue impacting social and economic progressIndian IT industry body Nasscom has expressed concerns over the US decision calling the move potentially disruptive to global business continuity and the innovation ecosystem in the United StatesIn a statement on Saturday Nasscom said that while it is reviewing the finer details of the proclamation such significant adjustments to the skilled worker visa programme could have farreaching implicationsldquoAdjustments of this nature can potentially have ripple effects on Americas innovation ecosystem and the wider job economy It will also impact Indian nationals that are on H1B visas working for global and Indian companies Indias technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments Companies will work closely with clients to adapt and manage transitionsrdquo the industry body saidNasscom further raised concerns about the timeline for implementationldquoThe timeline for implementation anyone entering the US after 1201 am September 21 is also a concern A oneday deadline creates considerable uncertainty for businesses professionals and students across the world Policy changes of this scale are best introduced with adequate transition periods allowing organizations and individuals to plan effectively and minimize disruptionrdquo Nasscom saidAcknowledging the shift in global delivery models Nasscom pointed out that Indian IT companies have been steadily reducing their dependence on the H1B route by increasing local hiring in the US It also defended the compliance and contribution of Indian firms to the US economyldquoThese companies also follow all necessary governance and compliance in the US for H1B processes pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups The H1B workers for these companies by no means are a threat to national security in the USrdquo the industry body saidNasscom reiterated the importance of highskilled talent in maintaining Americarsquos technological leadership particularly as AI and other frontier technologies reshape global competitivenessldquoNasscom has consistently emphasized that highskill talent is vital to driving innovation competitiveness and growth for Americas economy This is especially critical at a time when advances in AI and other frontier technologies are set to define global competitiveness Highskill talent will remain central to sustaining Americas innovation leadership and longterm economic strengthrdquo it notedThe industry body added that it will continue to monitor developments engage with stakeholders and seek further clarity on the discretionary waiver process to be granted by the Secretary of the Department of Homeland SecurityWith ANI inputs