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H-1B Visa Fee Surge & India’s Tech Sector Exodus or Adaptation?

by Moitrayee Devi Baruah - 16 October, 2025, 12:00 582 Views 0 Comment

“When the winds of change blow, some build walls, others build windmills.” It’s an old saying, but it fits quite well right now. With the U.S. suddenly raising H-1B visa petition fees to $100,000, India’s tech industry finds itself in the middle of a storm.

For decades, Indian professionals weren’t just part of the American story.  They wrote whole chapters of it. They designed, coded, analysed, and innovated. They didn’t “steal” jobs; they created value. It’s why more than 70% of H-1B approvals in 2024 went to Indians, many of them in fields that America itself can’t do without – AI, cloud computing, fintech.

And now? One fee hike threatens to make that pipeline thinner, riskier, and far more expensive. The immediate reaction is obvious: fewer Indian workers heading out, fresh graduates squeezed out of opportunities, and employers hesitating. But if you stop there, you miss the bigger picture. Change like this doesn’t just shut doors. It forces people to find new ones. This is very evident at the moment. Skilled professionals who once wanted long U.S. careers are coming back. Bengaluru, Pune and Hyderabad they’re buzzing with returnees carrying experience, networks, and new ideas. The visa fee may be meant as a barrier, but it’s also fueling something India badly needs: homegrown momentum.

Of course, politics is part of this story. This hike didn’t fall out of the sky. Back when Donald Trump was in office, he floated the idea of recurring H-1B charges, framing it as protecting American workers. Now, with the fee touching $100,000, it feels less like careful reform and more like a political message. Is this really about jobs? Or about arm-twisting countries like India into bending?

Ironically, the U.S. might be shooting itself in the foot. Tech companies there run on Indian talent. Not as cheap labour, but as specialists who deliver. Cutting that pipeline won’t suddenly create local replacements. It could mean slower projects, higher costs, and maybe even losing ground to competitors abroad. Silicon Valley has always functioned on global brainpower. Close the tap, and the whole system feels it.

India, too, has choices to make. For years, we leaned on this outward flow of talent. It brought remittances, reputation, and global visibility. But the fee surge is a reminder that we can’t rely on foreign corridors forever. Young graduates now find themselves competing with senior professionals for a shrinking number of U.S. slots. That’s a tough break. But it can also be a turning point.

Remote work is rewriting the rules. An engineer in India today can contribute to a global project without ever leaving her home city. Startups here are getting bolder with AI, semiconductors, green tech, and more. The government’s been nudging, too, with Startup India and other initiatives. The point is, the road out isn’t the only road up anymore.

Still, this whole episode forces a deeper question: why should opportunity always mean migration? Can we build an ecosystem so strong that leaving isn’t the default dream? But one thing is clear: talent doesn’t vanish because of fees. It shifts. It adapts. Those who thrive are the ones who can turn friction into fuel. In a strange way, this policy may do what countless speeches couldn’t—it may push India to stop relying on America’s welcome and start creating its own irresistible future.

The winds have changed. Will India’s brightest scatter? Or will they stay and build? Will this moment go down as the one where we hit a wall, or the one where we learned to build windmills?

So what do you think? Is this an exodus or an adaptation?

Moitrayee Devi Baruah
Author is a Research Associate at the Indian Institute of Public Administration, New Delhi. She holds a Master’s degree in Political Science from the Centre for Political Studies, Jawaharlal Nehru University. Her research interests span political ideologies, gender studies, and international relations, with a focus on their intersections in contemporary governance and policy-making.
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