US President Donald Trump’s announcement of a 50-fold hike in H-1B visa fees from $500 to $100,000 has sent shockwaves through the global tech industry and beyond.
The new fee targets only new applicants and is a one-off, but experts warn that this could lead to a long-term labour shortage. Indian companies like TCS and Infosys have already built local workforces to mitigate the impact.
India relies heavily on H-1B visas for its economy, with over 70% of recipients coming from India. The country’s IT sector faces significant challenges if it loses access to skilled workers.
The US, which has long relied on Indian talent, is likely to feel the effects too. Hospitals and universities may struggle to find doctors and STEM students, while start-ups could lose their innovation edge.
Experts predict that this move will force US companies to rethink their hiring policies and offshore work, leading to a devastating blow to US innovation and competitiveness.
The impact of this policy change will be felt across the globe, from remote contracting and gig workers to international study and the American university system. The full extent of the consequences remains uncertain, but one thing is clear: global talent is under threat.
Source: https://www.bbc.com/news/articles/ce3yy58lj79o