Sanjeev Sanyal: H-1B Benefits Favor the U.S., Not India

(NEW DELHI) Economist and policy advisor Sanjeev Sanyal argued that the United States 🇺🇸 gains more from the H-1B work visa than India does, warning that long-term visas should not be treated as bargaining chips in talks with foreign governments. Speaking at the Reforms Reloaded summit in New Delhi in September 2025, he placed his remarks in the shadow of a major policy jolt from Washington: a new US $100,000 application fee for fresh H-1B petitions, announced days earlier by the administration of President Trump.

The fee, he noted, applies only to new applications submitted after a set September date and does not hit renewals or current H-1B holders. Yet the sharp price tag has stirred unease among employers, prospective workers, and diaspora families.

Sanyal’s core message was direct: host countries capture most of the upside from programs like H-1B. He said the visa’s real payoff—innovation, tax revenue, intellectual property, and the growth of tech clusters—largely stays in the destination country. The source country, India in this case, often sees its most skilled people leave while holding little leverage in return.

“I am far from disappointed by the Trump tax on H1B visa. It benefits the US and US companies, not India. Indeed, never understood why we gave up negotiation points for them.”

He framed the rise of remote work as a practical test of the current model. If technology companies claim that coders, analysts, and engineers can deliver from anywhere, he asked, why must they relocate? Many of the biggest users of the H-1B program are American tech firms—names that loom large in global markets and in India’s job market as well. In his view, the arrangement strengthens US employers, not India’s long-term growth path, even when Indian professionals gain individual career boosts.

Policy shock and Sanyal’s thesis

The immediate flashpoint is the US $100,000 H-1B application fee for new filings, announced in September 2025 and enforced for petitions submitted after September 21, 2025. Authorities in Washington clarified that the hike does not touch renewal cases or people who already hold H-1B status. That carve-out offers some relief to current workers but does little for newcomers or companies planning fresh hires.

The surge in the upfront cost marks a steep jump from prior fee levels and is expected to reshape hiring plans, especially at smaller firms and startups that lack deep cash reserves.

Sanyal cast the fee change as part of a larger story about talent flows and national interest. He urged Indian policymakers to stop treating long-term visas as a goal of diplomacy. Visas, he argued, are assets that other countries should request from India—rather than tools India should lobby for abroad.

He pushed back against the common habit of counting more H-1B slots as a “win” for India, calling that a misunderstanding of where the benefits land.

Four key points Sanyal emphasized

1. H-1B strengthens American tech firms more than it helps India.
   The largest demand comes from US giants, not Indian companies. If IT work is truly location-flexible, he asked, what justifies mass physical relocation?

2. India should not give away visa leverage.
   In negotiations, India should hold firm and let other countries seek access to Indian talent, not the other way around.

3. Domestic reform matters more than visa counts.
   Cleaner governance, a better investment climate, and labor law fixes—bread-and-butter changes—help keep talent at home and draw experienced professionals back.

4. The host nation captures the main upside.
   Innovation, tax receipts, and intellectual property tend to accrue where the work is done and where teams cluster—not where the worker was born.

These points are more pressing in a world that leans on digital tools, distributed teams, and remote collaboration. The H-1B can still change a person’s life, and many Indian families see it as a path to international exposure and higher wages. But Sanyal’s claim is that the net national gain lies with the host country. That view contrasts with the belief that a larger pipeline of Indian H-1B workers automatically helps India as a whole.

Sanyal’s timing and tone were notable. While the fee shock drew anger from recruiters and fear among applicants, he described himself as “far from disappointed.” His point was not to make light of the personal stakes for families and young professionals who had prepared for years. Rather, he argued that India’s policy compass should not swing back and forth with US immigration moves. He urged a steady plan that grows India’s own research and startup ecosystems and that builds smoother return pathways for expatriates and non-resident Indians (NRIs) who want to come back.

Industry dynamics, diaspora concerns, and shifting leverage

The fee change lands in a market already in flux. The H-1B program still involves large numbers of Indian nationals, and big US tech firms remain among the most active sponsors. At the same time, the source material points to a drop in H-1B filings from Indian IT services firms over the past decade, suggesting a shift in how work is organized and where firms place staff.

That long-term adjustment—along with remote work habits—makes Sanyal’s question about the need for relocation more pointed.

He also challenged the idea that the best way to support Indian talent is to push for easier entry to US labor markets. In his view, this can produce a narrow focus on outbound visas while India overlooks steps that help people thrive at home. He called for:

• Streamlined governance that cuts red tape and improves daily life for companies and workers.
• A stronger investment climate that supports research, high-value manufacturing, and deep tech.
• Updated labor rules that keep pace with modern work and give firms and staff clear, fair terms.
• Better return policies for NRIs, so people who gain skills abroad can come back without hassle and continue their careers seamlessly.

Sanyal’s argument does not erase the real wins that individual H-1B holders can enjoy, from pay raises to new networks. But he wants India to measure success by metrics that capture national benefit, not just individual gains overseas. He believes the host country locks in the broader returns when people relocate and build their careers abroad—tax payments, patents, and cluster formation.

The new US fee structure underlines that point. By setting a US $100,000 price tag on a new H-1B application, Washington is signaling that access to US labor markets is costly and that the government wants to shape demand. The policy applies only to new filings, leaving renewals untouched. That split cushions the blow for those already on US soil but raises the bar for new entrants—especially for smaller employers who may struggle to justify the outlay.

Practical impacts and personal stories

For many families in India, the change adds stress to a process that can already feel unpredictable. Examples of immediate effects:

• A young engineer planning to apply this fall might defer dreams or shift to a remote role with a foreign company.
• A US startup that hoped to hire a niche expert from India could rethink its budget or growth timeline.
• Parents in Bengaluru or Hyderabad might worry that their child’s years of training now face a new financial wall.

Sanyal did not minimize these stories; he argued they should not anchor India’s national policy on talent.

VisaVerge.com reports that debates over H-1B often mix personal hope with national strategy, and policy changes tend to bring both confusion and strong opinions. According to analysis by VisaVerge.com, even where the path remains open for renewals, a sharp fee for new cases can discourage fresh hiring cycles and shift how companies plan their workforce. That framing echoes Sanyal’s caution: don’t build India’s strategy around another country’s program.

One practical question is how India can turn “return pathways” from a slogan into a working system. Sanyal’s answer focuses on the basics:

• Cut delays and reduce paperwork.
• Make it easy for professionals to come home and plug into research labs, startups, and manufacturing hubs.
• Measure success by how many skilled workers return and how quickly they resume high-skill work.

He also urged negotiators to treat visas as assets, not giveaways. If the world needs Indian talent, let other countries make the case for easier access—and on terms that reflect India’s worth. That flips a common script: rather than pleading for more slots abroad, India would focus on building strength at home and set clearer terms for mobility.

Remote work, shifting business models, and data trends

Sanyal applied the same logic to tech offshoring. If Indian companies and professionals truly can work from anywhere, time zones and digital tools should cut many of the old barriers. An Indian engineer can contribute to a US project without uprooting family or paying a steep social cost.

Key data points in the source material:

• Indian nationals still make up over 70% of H-1B holders.
• There has been a nearly 80% fall in applications from Indian IT firms across a decade.

These trends suggest the H-1B “brand” remains tied to Indian talent even as the business model of sending large numbers of staff onsite has changed. Combined with the rise of remote work, this is the lens through which Sanyal questions whether outbound migration serves India’s broader goals.

For US employers, the US $100,000 fee for new H-1Bs will force trade-offs:

• Large firms may absorb the cost if the skill is scarce.
• Smaller firms and early-stage startups could delay hiring or choose local talent despite fit challenges.
• Renewals are carved out, so existing teams can try to preserve talent, but new hires face a fresh hurdle.

For prospective applicants, the fee shock may prompt new plans:

• Pursue remote roles with US employers from India.
• Shift timelines or consider other destinations.
• Wait to see whether market pressure prompts policy change (no indication of that in the source).

Sanyal’s ask is for India to revisit its assumptions: more outbound H-1B does not, by itself, add up to national gain.

Policy posture, diaspora, and the long view

Sanyal touched on pride and place. Countries compete over skilled people because they bring ideas, new firms, and high tax bases. In that contest, he said the host usually wins. If India invests in its own ecosystem—labs, venture funding, public digital infrastructure—it can keep more of the rewards at home and draw back more Indians who left.

Return-friendly systems require careful design:

• Fast approvals
• Clear tax rules
• Help with family resettlement

While the source does not list program details, his sketch is simple: make it easy to come home and plug in fast.

The H-1B fee debate can feel like a tug-of-war between two stories:

• One: the program changes lives for Indian students and professionals.
• Two (Sanyal’s): country-level math points the other way.

Both can be true. An individual win does not always add up to national gain.

He also urged negotiators to change posture:

• Focus on reciprocity and national interest.
• Offer visas on terms that serve India’s goals.
• Let other nations propose access arrangements that respect India’s leverage.

Sanyal’s tone was strategic rather than confrontational: hold the line on leverage, invest at home, and build channels for return.

For official program rules, the USCIS page on the H-1B program remains the authoritative source for government guidance on how the category works and who qualifies. For those details, see the USCIS H-1B program.

Takeaways and next steps

• The US $100,000 fee for new H-1B applications is a signal: the host controls access and can shape demand through price.
• India should avoid tying national strategy to another country’s visa policy.
• Priority actions for India: strengthen governance, improve the investment climate, update labor rules, and design return-friendly pathways.
• Individuals should continue to pursue opportunities, but policymakers must measure national gain by returns captured at home—research output, patents, tax revenues, and startups—not just by the number of citizens who work abroad.

As the dust settles from the US policy, companies will redo budgets and applicants will redo plans. India, Sanyal said, should redo its playbook: build strong systems, keep talent, make return easy, and let other countries seek access to Indian skill on terms that respect India’s interests. The H-1B may still open doors for many, but in Sanyal’s view, those doors open mainly into houses built—and taxed—in the host country.