Trump’s New $100,000 Visa Fee Could Be Devastating For India’s Economy

Many Americans are simply not aware of how much of the global economy survives by siphoning cash and jobs from the US through immigration (legal and illegal).  If they knew, they would probably have demanded that the door on H-1B visas be slammed shut much sooner.  

Indian officials on Saturday said they are examining the implications of the United States’ decision to impose a $100,000 fee on H-1B visas, but stressed that the measure could have “humanitarian consequences by way of the disruption caused for families”.  

“The government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program,” a statement issued by the ministry of external affairs said.

Our statement regarding restrictions to the US H1B visa program
https://t.co/fkOjHIxEu9 pic.twitter.com/1rM9W3GYqC

— Randhir Jaiswal (@MEAIndia) September 20, 2025

To understand why India’s government is so rattled by Trump’s decision we have to look at the bigger picture, which includes remittances and the demand for US dollars overseas.  

First, the $100,000 fee imposed on H-1B visas will effectively kill the program.  It is, effectively, an H-1B travel ban without going through the long process of officially rescinding the Immigration Act of 1990.  The fee is paid by the company hiring the foreign workers and a $100,000 markup would mean only the most valuable employees would be worth the cost.  Many critics of open border policies argue that this is a good thing.  The narrative has long been that American companies need foreign workers because:

1) Americans won’t work in jobs that foreigners are willing to do.

2) There aren’t enough American workers with the skills required to fill certain job sets.

These excuses are generally a distraction from the real reason – Third world immigrants are willing to work for up to 30% less than their American counterparts. Why? Because the US dollar’s buying power in third world economy more than makes up for the 30% loss in wages.  For example, an income of $2000 US per month equates to an “upper class lifestyle” in India. 

In other words, it’s a win-win-lose scenario:  The corporations win on lower labor costs, the third world migrants win by wiring their wages back home where they will buy far more, and the average American worker loses out on job opportunities. 

India accounts for 71% of H-1B visa holders and is expected to be hit hardest by the new fees. Currently, around 300,000 “high-skilled” Indian workers, mostly in the technology industry, are on H-1B visas in the US.  The term “high skilled” is up for interpretation, many migrant workers lie about their skill sets before coming to the US and offer little in comparison to the average US worker in the same field.   

Another indirect winner in this game is India’s economy.

India is the largest recipient of remittances from the US in the world (cash wired by migrants from the US back home).  Without feeding on remittances from America, India loses out on over $140 billion (around 30% of their annual tax revenues).  Without this cash, India’s economy would implode. 

Furthermore, India’s rupee has hit record lows against the dollar this month.  The country is highly dependent on oil imports and oil is primarily purchased with dollars.  The flow of dollars from migrants in the US into India’s economy is more important than ever.  The loss of dollars flowing from 300,000+ Indian workers living in the US could be devastating.

That said, it is not the responsibility of the US to sacrifice American jobs just to keep India’s economy afloat.  If companies actually attempted to train or hire American workers first at a fair wage and could not find enough people to fill necessary positions, then the story on foreign visas might be different.  However, until now, there has been no incentive for corporations to try.