H1B visa fee hike likely to have humanitarian consequences; hope 'disruptions' would be addressed: India

New Delhi, Sep 20 (PTI) India on Saturday said the Trump administration's decision to raise the annual fee for H-1B visas to a whopping USD 1,00,000 is likely to have "humanitarian consequences" and hoped that the "disruptions" will be addressed suitably by Washington.

US President Donald Trump signed a proclamation to increase the fee that is set to significantly impact Indian technology companies as well as skilled Indian professionals.

"This measure is likely to have humanitarian consequences by way of the disruption caused for families," External Affairs Ministry spokesperson Randhir Jaiswal said.

"The government hopes that these disruptions can be addressed suitably by the US authorities," he said, adding the full implications of the move is being studied by all concerned stakeholders.

Trump's restrictions on the popular employment visa regime is seen as part of larger efforts to crack down on immigration.

Under the H-1B visa programme, companies recruit foreign workers with specialised skills to work in the US, initially for three years that can be renewed for three more years.

While the proclamation said that USD 100,000 will be levied as the application fee for H1B visas, Commerce Secretary Howard Lutnick told reporters that the total fee for three years will be USD 300,000.

Indians make up an estimated 71 per cent of all approved H-1B applications in recent years, according to US Citizenship and Immigration Services (USCIS).

In its reaction, New Delhi said the full implications of the measure are being studied by all concerned.

"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 programme," Jaiswal said.

Industries in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward, he said.

Jaiswal said skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the US and India.

"Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries," he said.

Nasscom, an umbrella body that represents India's USD 283 billion IT and technology industry, said the restrictions will impact Indian nationals on H-1B visas as well as India's technology services companies.

"A one-day 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 organisations and individuals to plan effectively and minimise disruption," it said in a statement.

At present, the H-1B visa fee that companies pay to sponsor H1-B applicants ranges from about USD 2,000 to USD 5,000, depending on employer size and other costs.

In the proclamation, Trump said the H-1B visa programme was created to bring "temporary workers into the US to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour".

"The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security." Trump said some employers have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a "disadvantageous labour market" for American citizens. PTI MPB ZMN