Talented, but Taxed: US H-1B Fee Hike Exposes Immigration Hypocrisy

By Sanjeev Oak

By slapping a $100,000 fee on new H-1B applications, Washington has not just raised a barrier — it has raised a mirror. The move betrays America’s anxiety about Indian talent, even as India seizes the chance to turn brain drain into brain gain.

What the Policy Is

The Trump administration has suddenly hiked the application fee for new H-1B visas to $100,000 — a sixty-fold increase. While renewals are exempt for now, the policy hits hardest at those applying afresh, especially in IT, healthcare and engineering.

Since Indians account for nearly 71% of all H-1B visa holders, the measure disproportionately targets India. Officially justified as protecting local jobs, it was unveiled without consultation, leaving firms and families scrambling.

Why This Hurts the US More Than It Helps

• Innovation depends on openness. America’s tech boom has thrived on Indian and global talent. By walling off skilled migration, Washington risks stunting its own R&D ecosystem.
• Small firms will bleed. Tech giants may absorb the fee, but startups, hospitals, research labs cannot. The policy creates an uneven playing field, hurting sectors that need global talent the most.
• Families are collateral. The disruption isn’t abstract. Lives, careers and family stability are thrown into limbo. For many, the “American Dream” now carries a six-figure price tag before it even begins.

India’s Response: Clear, Confident, and Correct

India’s reaction has been swift. Commerce Minister Piyush Goyal bluntly stated the US was “a little afraid of our talent.” Industry body Nasscom pointed out that Indian engineers have powered American companies for decades — and taxing that contribution is self-defeating.

New Delhi is also using diplomatic levers. Demands for clarity on timelines, exemptions and humanitarian safeguards have been lodged. But beyond complaint, India is turning this into a principled stance: mobility is not charity, it is global necessity.

“They are also a little afraid of our talent.”
— Piyush Goyal

The Opportunity for India: From Drain to Gain

Ironically, what looks like a wall for Indians abroad could become a window at home.

1. Reverse Brain Drain: If working in the US becomes prohibitively expensive, many skilled professionals may stay in or return to India. Their networks and expertise could enrich India’s innovation ecosystem.
2. Domestic IT and Deep Tech Boost: India’s AI, SaaS and semiconductor industries can absorb talent once destined for Silicon Valley. This strengthens self-reliance while adding export potential.
3. Global Capability Centers: Multinationals squeezed by visa costs may prefer expanding in India, not California. Already, India hosts over 1,500 global capability centers — that number could swell.
4. Policy Push: To capitalise, India must double down on reforms: better infrastructure, smoother regulations, deeper skilling pipelines.

Why the Visa Debate Is Really About Global Fairness

The US owes much of its digital rise to immigrant talent, especially from India. To penalise that same talent is hypocrisy at best, xenophobia at worst. Protectionism dressed as patriotism will not solve America’s labour issues.

For India, this is no longer about begging for visas. It is about asserting that Indian talent deserves respect — not taxation.

“By making it very expensive for companies to attract foreign talent … the brain drain will weigh heavily on productivity.”
— Economist Atakan Bakiskan

What India Must Do Next

1. Frame the Narrative: India is not seeking concessions; it is demanding fairness.
2. Invest at Home: Strengthen skilling, R&D funding and academia-industry partnerships to make India a magnet for talent.
3. Diplomatic Pressure: Mobilise allies in Europe and Asia to challenge restrictive migration policies that harm global innovation.
4. Build Brain Ecosystems: Instead of one-way outflow, nurture ecosystems where talent circulates, innovates and anchors in India.

What is the H-1B Visa?

• The H-1B is a non-immigrant visa that allows US companies to hire foreign workers in specialised fields like IT, engineering, and healthcare.
• Capped annually, with Indians making up the overwhelming majority of recipients.
• Considered a key pathway for global talent to contribute to — and benefit from — America’s innovation economy.

“The policy change would have humanitarian consequences by way of the disruption caused for families.”
— Indian Government Statement

Final word

The H-1B fee hike is not just about economics. It is about identity, fairness and the future of global innovation. If America walls itself off, India must build higher within.

This moment offers India a pivot — from exporter of talent to architect of ecosystems, from passive victim of brain drain to proactive leader of brain circulation.

The US may be taxing Indian brilliance. But India, if it seizes the moment, can turn that tax into a dividend for itself.