India concerned by new US fee targeting skilled foreign workers

India's leading IT trade body said on Sept 20 it was concerned by a new annual US$100,000 fee that US President Donald Trump ordered for H-1B skilled worker visas, an addition that could have major repercussions for the tech industry where such permits are widespread.

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The Foreign Ministry in New Delhi also said the measure, which will likely face legal challenges, would cause “disruption” for the families of H-1B visa holders.

Such visas allow companies to sponsor foreign workers with specialised skills such as scientists, engineers and computer programmers to work in the US, initially for three years but extendable to six.

The US awards 85,000 H-1B visas a year on a lottery system, with India accounting for around three-quarters of the recipients.

India’s top IT industry body Nasscom said the new measure would hit “business continuity”.

The IT body also cited concerns over the short timeline, with the new fee coming into effect on Sept 21.

“A one-day deadline creates considerable uncertainty for businesses, professionals and students across the world,” Nasscom said.

“Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”