India Warns Trump’s $100,000 H-1B Visa Fee Could ‘Disrupt Families’ and Global Tech

India’s Ministry of External Affairs issued a strong statement on Saturday, warning that President Donald Trump’s administration’s decision to impose a $100,000 annual fee on new H-1B visas could have grave humanitarian consequences.

“The measure risks potential disruptions for families,” New Delhi said, urging Washington to address the issue with care. Officials added that they are still assessing the full impact of the policy, which was unveiled on Friday and takes effect immediately.

The H-1B visa programme has been a cornerstone of US-India economic ties, with Indian professionals making up 71% of approved applicants in 2024.

Humanitarian and Business Fallout

India’s leading trade body, Nasscom, representing the country’s $283 billion IT and outsourcing industry, called the abrupt one-day rollout a “matter of concern.”

“A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” the group warned. Nasscom also said the new costs could disrupt onshore projects, delay services for US clients, and trigger ripple effects across the global innovation ecosystem.

Financial firms are also bracing for turmoil. Goldman Sachs issued an internal memo urging H-1B visa employees to exercise caution on international travel, acknowledging “uncertain times for our people on H-1B visas and their families.”

The days of employers abusing H-1B Visas are over.

Introducing PROJECT FIREWALL—our plan to ensure high-skilled jobs go to AMERICANS FIRST 🇺🇸 pic.twitter.com/XPwBJSZfto

— U.S. Department of Labor (@USDOL) September 19, 2025

White House Defense and Corporate Caution

A White House official clarified that the new fee applies only to new H-1B applications, not renewals or existing visas. Officials framed the policy as a way to ensure that companies only sponsor workers with rare, specialized skills.

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But major US corporations like Microsoft, Amazon, and JPMorgan have already advised employees to remain inside the country until clearer travel guidance emerges.

Critics, including Tesla CEO Elon Musk, argue the fee will choke the US innovation pipeline, warning that America doesn’t have enough domestic tech talent to fill the gap.

Howdy Modi? Indian Prime Minister with Donald Trump

Geopolitical and Economic Risks

The H-1B visa program, created in 1990, provides 85,000 new slots annually and has long been vital for the US tech industry. Analysts now warn that Trump’s fee hike could push companies to relocate high-value projects overseas, jeopardizing America’s competitiveness in areas like artificial intelligence, especially against China.

India is the largest source of H-1B workers, with China a distant second at 11.7%. The abrupt change could also strain US-India relations, already frayed despite the once-close rapport between Trump and Indian Prime Minister Narendra Modi.

Immigration Crackdown and ‘Gold Card’ Residency

The $100,000 visa fee marks the Trump administration’s most aggressive move yet in its broader immigration crackdown, which has included restrictions on both undocumented and legal pathways. Alongside the H-1B overhaul, Trump announced a new $1 million “gold card” residency program, giving wealthy applicants a direct path to US permanent residency.

While Trump officials insist that “all the big companies are on board,” critics argue that the move prioritises short-term revenue over long-term competitiveness. With India, South Korea, and major corporations raising alarm, the policy is likely to face legal challenges and continued diplomatic pushback.

For now, thousands of skilled workers and their families are left in limbo, caught between political grandstanding and the realities of global talent mobility.