US Proposal for $100,000 Fee on Work Visas Could Drive Top IIT Graduates to Canada and Europe; Shashi Tharoor Calls for Indian-Americans to Influence Policy
Published on: September 24, 2025
By: BTNI
Location: Bengaluru, India
A proposed hike in US H-1B visa fees to a prohibitive $100,000 per application has ignited outrage in India’s tech corridors, potentially derailing the dreams of thousands of skilled professionals. The policy, floated by the US Department of Homeland Security amid debates on immigration reform, is seen as a direct blow to the Indian IT workforce, which dominates 70% of H-1B approvals annually.
India sends more skilled workers to the US than any other country, with over 85,000 H-1B visas issued to Indians last year alone, fueling giants like Infosys, TCS, and Wipro. The fee escalation—up from the current $5,000—could make sponsorship unaffordable for startups and mid-sized firms, prompting a brain drain to competitor nations like Canada and the UK. “This isn’t protectionism; it’s a talent tax that punishes innovation,” remarked NASSCOM President Debjani Ghosh, estimating a $50 billion hit to India’s IT exports over five years.
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Congress MP Shashi Tharoor, speaking at a virtual town hall with Indian-Americans, urged the 4.5-million-strong diaspora to lobby aggressively. “Your silence on H-1B, tariffs, and trade barriers is deafening. Push your lawmakers—bipartisan support for India exists, but it needs voices like yours,” Tharoor implored, referencing a recent Democratic delegation’s reaffirmation of strong US-India ties. Yale scholar Roopa Unnikrishnan echoed this, warning that the policy could “drive top IIT graduates away from US startups, stifling Silicon Valley’s edge.”
In Hyderabad and Pune, tech hubs are abuzz with webinars and petitions, as young engineers like 24-year-old Priya Sharma from IIT Bombay reconsider US dreams for opportunities in Germany’s tech visa program. The Indian government, through the Ministry of External Affairs, has lodged a formal protest, seeking exemptions for high-skill sectors. PM Modi, in a tweet, reaffirmed commitment to skilling 40 million youth by 2027, positioning it as a buffer against such external shocks.
As the proposal heads to Congressional review, the H-1B saga highlights the fragility of global talent flows. For India’s burgeoning middle class, it’s a stark reminder that borders, once bridged by ambition, now come with a hefty price tag. The coming weeks will test diplomatic finesse and domestic resolve in equal measure.
