By Manash Ranjan Debata
Trump’s H1B Visa fee hike has taken the Indian IT industry by storm. It has been the worst news for lakhs of Indian talent waiting to realize their American dream. In one stroke, decades of business relations were undone. Many panicked Indian youth de-boarded an India-bound flight fearing they won’t be allowed entry to US again. This has become a hard question for Indian leadership to address. Foreign Minister Dr. Jaishankar took it up with Mike Rubio, but no immediate solution is in sight. The truth is that once the U.S. imposes a regulatory or fiscal barrier like a steep H1B visa fee, India’s options are partly constrained by its leverage, diplomatic tools, and structural strengths.
Despite this, there are several strategies and countermeasures on India’s table — some defensive, some offensive — to mitigate or stymie the negative effects of these narrow thinking. Let’s present here a mix of policy, structural, diplomatic, and industry-level levers.
First, understanding the challenge & constraints. Let’s clarify what we’re up against. The new U.S. rule (as currently reported) would impose a $100,000 fee on new H1B visa applications. This is a dramatic jump and would make many new transfers or hires via H1B prohibitively expensive. Existing visa holders, renewals, etc., may be exempt or subject to different rules. The burden falls disproportionately on Indian IT/tech firms, since Indian nationals account for a large share of H1B beneficiaries.)
The U.S. is trying to frame this as protecting U.S. jobs or reducing abuse of the H1B program. So there is a political narrative to counter, not just financial pressure.
Because sovereignty and immigration are core to a country’s rights, India cannot unilaterally “veto” what the U.S. does. But it can use its influence, partnerships, industrial strengths, and incentives to re-orient flows and reduce dependence.
So, what are the strategic and policy responses for India? Here are potential measures India could take. Some are highpolitical (requiring government leadership), some are more at the level of industry or states. They vary in feasibility, time horizon, and risk.
India should raise the issue at high levels in U.S–India bilateral talks and invoke reciprocity or conditional leverage (e.g. trade, market access, visas). It can engage through multilateral forums (WTO, G20) emphasizing fair mobility of skilled workers. – Use “soft power” arguments: India supplies key talent, helps U.S. innovation, etc.
The Government has to increase incentives for Indian technologists to stay or return: R&D grants, tax breaks, startup funding, infrastructure in tech corridors. It has to accelerate “brain gain” policies, e.g. easier funding, visas to Indians abroad to return, dual citizenship. Global remote work has to be promoted, allowing Indian firms to capture work that would have otherwise required relocating talent.
Many already foresee U.S. companies shifting more work offshore rather than relocating people. Government should use the opportunity to provide better incentives for multinationals to expand centers in India, while improving infrastructure (connectivity, power, data centers, regulatory environment) in tech hubs to attract more high-end work.
India would do well to focus on technology, AI, cloud, cybersecurity, niche specialization that can be delivered remotely (so the need to send people across borders is minimized). It should encourage cross-border services, not just relocations, and push Indian firms to bid for U.S. contracts from India. Meanwhile, the govt should extend support to the all important Indian MSMEs /startups to globalize digitally, reducing dependence on U.S. clients that insist on onshore presence.
Creating a “transition fund” or “buffer scheme” to help Indian IT/consultancy firms absorb cost impacts (like subsidies, grants, interestfree loans) will go a long way to minimize the impact. The govt. should develop insurance or hedging mechanisms for firms whose margins will be stressed by the fee hike and offer tax relief or credits on revenue from U.S. contracts to offset the extra cost.
India can’t sit silently. It has to aggressively look for alternative markets & talent diversification. It should encourage Indian professionals to not just aim for the U.S., but also target Canada, EU, other innovation hubs. Similarly, Indian firms should double down in other geographies.
Similarly, India should take steps to accelerate GCC / outsourcing growth. Since many U.S. firms may prefer not to pay a huge relocation premium, India can capture more of their IT/tech/operations work domestically by incentivizing those shifts aggressively.
