Trump’s H-1B visa order sparks panic; India studying full impact, flags humanitarian concerns

India on Saturday said it is examining the full implications of the United States’ sweeping new restrictions on the H-1B visa programme and expressed hope that Washington would address the disruptions caused to families and businesses by the sudden move.

The response came hours after US President Donald Trump signed a proclamation sharply increasing visa fees and tightening entry norms for high-skilled foreign workers.

The order, which takes effect at 12.01 am EDT on September 21, requires a USD 100,000 annual fee for companies seeking to hire H-1B workers and introduces a USD 1 million “gold card” visa as a pathway to American citizenship for wealthy individuals.

“The Government has seen reports related to the proposed restrictions on the US H-1B 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 H-1B program,” the Ministry of External Affairs said in a statement.

MEA spokesperson Randhir Jaiswal noted that the industry in both India and the US has a stake in innovation and creativity and could be expected to consult on the best path forward.

“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India,” the spokesperson said, adding that policymakers will assess recent steps keeping in mind “mutual benefits, which include strong people-to-people ties between the two countries.”

The ministry also flagged the humanitarian consequences of the US decision.

“This 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 authorities,” Jaiswal said.

The proclamation, titled Restriction on Entry of Certain Nonimmigrant Workers, triggered panic among H-1B visa holders and their employers. Immigration attorneys warned that foreign professionals currently outside the US risk being stranded if they fail to return before the deadline.

There were reports of Indian professionals who were heading home for festivities disembarking from aircraft at the San Francisco International Airport after Trump's announcement to overhaul H-1B visa programme for high-skilled foreign workers.

Indians account for nearly 71% of all approved H-1B applications, according to the US Citizenship and Immigration Services, making them the largest beneficiaries of the programme.

Technology firms such as Amazon, Microsoft, Google, Tata Consultancy Services, Infosys and Wipro are among the biggest users of the visa category, which allows skilled foreign workers to be employed in the US for up to six years.

Industry body Nasscom said the abrupt changes would disrupt business continuity for onshore projects and create “considerable uncertainty” for companies and professionals.

The US move comes just as India-US trade talks had begun to regain momentum. Commerce Minister Piyush Goyal is expected to visit the US next week.