What happens when you are too clever – “Sweet Mango” becomes “Sour Mini Mango” – Trump’s H1B visa going to be a boon for India !
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Highlights – Trump’s H1B visa fee hike is driving American companies to increase their investments in India and the GCC, which will boost employment and high-tech investment in India.
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Trump H1B visa fee increase:
While US President Donald Trump’s controversial decision to drastically increase H1B visa fees initially shocked over 70% of Indian H1B holders living in the US, industry experts and economists now believe that this decision will directly impact India’s fortunes. American companies are increasingly turning to India for their offshoring operations and are taking full advantage of the Global Capacity Centers (GCCs) located here.
$100,000 visa fee changes US companies’ strategy
The Trump administration signed an executive order earlier this month imposing a $100,000 (approximately ₹88 lakh) fee on new H1B applications for skilled workers from abroad. This is nearly 70 times higher than the previous fee ($1,500-$4,000). The Trump administration focused on restricting H1B visas, citing concerns about job loss and national security. This drastic fee increase has forced American companies to shift their strategies, directly benefiting India, the world’s fifth-largest economy.
India Becomes a Hub for High-Value Innovation
According to a media report, India hosts more than half of the world’s GCC centers, numbering over 1,700. These centers have now expanded beyond their traditional tech support functions to become hubs for high-value innovation and strategic work such as AI (Artificial Intelligence), luxury car dashboard design, and drug discovery.
“GCCs are specifically designed for these times. They operate as an in-house engine,” Rohan Lobo, partner and GCC industry leader at Deloitte India, told Reuters. Lobo said that many American companies are already re-evaluating their staffing needs and planning to relocate to India. This shift is most pronounced in sectors like financial services and technology.
After H1B, L-1 visas will also be tightened
In addition to increased fees on H1B visas, two US senators on Monday reintroduced a bill to tighten the rules for the H1B and L-1 visa programs. The bill aims to prevent loopholes and abuses in these visa programs by major companies. Industry experts believe that if Trump’s visa restrictions are not challenged, American companies will transfer high-level work related to AI, product development, cybersecurity, and analytics to India’s GCC. They would prefer to source these strategic functions internally rather than outsourcing them to India’s GCC. The uncertainty created by recent visa changes has given new impetus to discussions about transferring high-value work to India’s GCC, which is expected to lead to a significant surge in employment and high-tech investment in India in the future.
