'$100k will hurt both sides': Former UN envoy warns H-1B fee could erode trust between India, US

Former Indian Permanent Representative to the United Nations, Syed Akbaruddin, has strongly criticised the US government's recent decision to impose a USD 100,000 fee hike on new H-1B visa petitions. He called it a "tax on trust" and warned that it undermines the mutual benefits of the programme, which has long facilitated talent exchange between India and the United States. Akbaruddin expressed concern that this move could erode the goodwill built over years between the two nations.

In an interview with ANI, Akbaruddin likened the fee increase to a “barrier on a bridge of talent,” arguing that taxing skilled migration would harm both countries. He pointed out that the H-1B visa has traditionally been a "win-win" arrangement for both India and the US. While Indian engineers saw the visa as a stepping stone to global careers, the US benefited from the talent it needed to fill critical skill gaps. He emphasised, "H-1B was a bridge between the US and India. However, today, it's not seen as a ladder, but it's seen as a loophole."

Akbaruddin also cautioned that taxing talent was a “race” that both countries would lose, stating, "Partners don't choke talent; they channelise it." He further explained that public goodwill is fragile and that the dreams of young people should be handled carefully. He added, "If tariffs are a tax on goods, this toll on H-1B is a tax on trust."

Reflecting on the broader implications of the visa fee hike, Akbaruddin pointed out that the program has benefited both Indian professionals and US society. He remarked that the thousands of young Indians who bridged the gap between the two countries had made significant contributions to American society.

This criticism comes just days after US President Donald Trump signed a proclamation imposing the hefty fee for new H-1B visa applications, marking a dramatic increase from the previous fee of USD 1,500. The new fee, which applies to new petitions filed after September 21, will not affect current H-1B visa holders.

India’s Global Capability Centres as a Solution

In response to the challenges posed by the new visa policy, Akbaruddin suggested that India could leverage its Global Capability Centres (GCCs) as a potential solution. He explained that if the US hesitates to accept talent, India could provide the opportunity by boosting its own GCCs. Akbaruddin believed that India should not view the H-1B fee as a loss but rather as an opportunity to recalibrate its talent strategy. He said, "If America is hesitating to take talent, Bengaluru should take it, or Canada will take it. Talent will go where opportunity is."