Former NITI Aayog CEO and ex-G20 Sherpa Amitabh Kant has termed US President Donald Trump’s H-1B visa overhaul, which imposes a steep USD 100,000 fee per application, as a potential boon for India’s innovation ecosystem. Kant highlighted that the move could stifle foreign talent inflows into the United States and redirect global expertise to Indian tech hubs such as Bangalore, Hyderabad, Pune, and Gurgaon.
In a post on X, Kant emphasised that the fee would create opportunities for India’s top doctors, engineers, scientists, and innovators to contribute to national development, accelerating progress towards a ‘Viksit Bharat’. “Donald Trump’s 100,000 H-1B fee will choke U.S. innovation, and turbocharge India’s. By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon. America’s loss will be India’s gain,” he wrote.
Industry voices back the optimism
Entrepreneurs and tech leaders have echoed similar sentiments. Kunal Bahl, former CEO of Snapdeal, noted that many skilled professionals are likely to return to India due to the new regulations. “Because of the new H-1B rules, a tremendous number of talented individuals are going to be headed back to India. It will no doubt be tough in the beginning to move base, but will work out for them given the tremendous opportunities in India. The talent density in India is going up,” Bahl said.
The increased visa fee could disrupt the US tech outsourcing model, where Indian software engineers often work onsite in America. Instead, this may encourage companies to expand Global Capability Centres (GCCs) in India, thereby strengthening the domestic tech and innovation ecosystem.
US administration’s rationale
Trump’s presidential proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers” and effective from September 21, aims to curb alleged abuses of the H-1B programme. The administration cited concerns that low-wage, entry-level hires have displaced American graduates and suppressed wages. It also highlighted investigations into visa fraud and money laundering involving companies heavily reliant on H-1B workers.
Under the new rules, employers must now provide proof of the USD 100,000 payment when filing H-1B petitions. Oversight will be carried out by the US Departments of State and Homeland Security, with limited exemptions for petitions considered in the national interest.
Implications for India
Analysts suggest that India could emerge as a global innovation hub, attracting skilled professionals who would have otherwise gone to the US. With tech talent returning and GCCs expanding, India’s startup ecosystem and R&D capabilities could witness significant growth. Kant’s optimism underscores a larger narrative: policy changes abroad can create opportunities for domestic capacity building and talent retention.
As Indian IT firms and innovators recalibrate to the new global scenario, the USD 100,000 H-1B fee may mark a turning point for India’s tech industry, encouraging both returnees and local talent to contribute to domestic innovation and entrepreneurship.