Donald Trump's new USD100000 H-1B visa fee hike could benefit Indians because., golden opportunity to India due to.
ashington DC: Amid the tariff tensions with India, United States President Donald Trump on Friday signed a proclamation that will increase H-1B visas fee to a USD1,00,000 annually.
This move is seen as the latest weapon of the Trump-led administration to crack down on immigration. The move can harm several major US-based companies. This move is specifically aimed at protecting the US workers, ensuring American companies to recruit "truly extraordinary people". The decision has created a "crazy sense of panic" among Indian H-1B visa holders in the US. The decision, which has come weeks before Diwali and the year-end holiday season, has left people in turmoil. Several H1B visa holders cancelled flights and many called off their own wedding trip to India, as the new rule directly affects reentry.
How Trump's New USD 100,000 H-1B Visa Fee Hike Could Benefit India?
The announcement of fee hike has created panic among the H-1B Visa holders and the people who are applying for it. However, this announcement could be a win-win situation for India.
According to experts, US-based companies that may suffer losses due to the H1B visa fee hike may hire more people in India itself. It simply means that Trump's decision could also be a golden opportunity for India as it will increase new job opportunities in the country.
HIGHLIGHTS
US has increased H-1B visa fees to USD 100,000 annually, triggering panic among Indian visa holders.
The hike raises costs for US firms, potentially reducing profits, stopping them bringing skilled workers to America
Experts suggest US companies may offset costs by outsourcing more work to Indian IT firms.
While Indian IT companies face higher costs for sending employees abroad, the move could drive new employment in India's tech sector.
Is There Any Loophole Through Which US Companies Can Create New Jobs?
As per a report by Economic Times, the US-based companies can create jobs in two ways. (1) These companies can directly connect with Indian IT companies, outsourcing most part of their work. (2) The companies can open their branch offices (GCC) in India, employing more people here rather than inviting them to the US.
Notably, the increase in H-1B visa fees has made it more expensive for companies to bring skilled workers to the country. The new fee hike will increase the cost burden on these companies, reducing their profits.
However, what can be seen as a good sign is that these companies will hire more people in India itself, further increasing employment in India.
Will Have To Bear Some Loss
According to Parekh Jain, CEO of consultancy firm EIIR Trend, the sudden increase in H-1B visa fees (USD 100000) will directly hit Indian IT companies, as each project requires some people to move to US and work from there, others to work from India.
To deal with the situation, the US companies will try to outsource more work to India. he said tech companies like Microsoft, which are struggling to find people on H-1B visas, will rely more on their GCC companies in India.