Global Workforce Is a Reality: Jaishankar’s View on the H-1B Row

India’s External Affairs Minister S. Jaishankar said a “global workforce is a reality” in remarks at the UN General Assembly in September 2025, responding to a sweeping US overhaul of the H-1B visa that sharply raises costs for employers. His comments came days after the Trump administration unveiled a new $100,000 fee for each new H-1B visa, up from a previous range of $1,700–$8,000. The policy, effective September 21, 2025, does not apply to renewals or existing visa holders, but it immediately changes the cost calculus for companies that rely on high-skilled foreign talent, especially from India 🇮🇳 and the United States 🇺🇸.

US officials say the fee jump is designed to curb alleged “systemic abuse” and protect American workers who, they argue, have been displaced by lower-paid foreign labor. The initiative arrives as part of a broader US overhaul of employment visas, with the H-1B visa system at the center. The rollout has intensified political debate in Washington about wage protections, staffing firm practices, and how to balance employer demand with worker safeguards during a cooling tech market.

Jaishankar’s point was blunt: many economies cannot meet labor needs from domestic pools alone. He said the location and management of talent can be debated, but the demand for a global workforce will persist. He linked mobility to trade and technology, noting that just as global trade finds ways around barriers, talent flows also adapt. According to analysis by VisaVerge.com, his intervention signals a diplomatic push for updated rules that match today’s cross-border business reality rather than retreat from it.

Indian professionals are the largest group of H-1B beneficiaries, and Indian IT service firms have long used the category to fill skill gaps in client projects. Industry executives expect to share higher costs with US clients and absorb some expense through local hiring already underway. They forecast only modest pressure on margins because reliance on H-1B visas has fallen as firms have built larger onshore teams in the US. Still, the $100,000 price tag for each new filing is a major shift that could limit smaller or mid-size employers and thin the pipeline for fresh graduates.

Policy changes overview

• Effective date: September 21, 2025
• Applies to: New H-1B applicants only — renewals and existing visa holders are excluded.
• Purpose cited by US officials: Deter abuse, protect US workers, and fund enforcement.
• Administration argument: Cases show layoffs of US workers alongside rising H-1B approvals; higher fees act as a deterrent to replacement practices.
• Business groups’ response: Rule punishes compliant employers and does little to address processing delays or the outdated annual cap.

Jaishankar urged governments to move toward an “acceptable, contemporary, efficient model” for labor mobility. He emphasized three ideas:

1. Demographics: Aging workforces in some nations create a need for migrant labor.
2. Politics vs economics: The argument over where talent sits is political, but the demand for talent is economic.
3. Cooperation: Countries should align labor pathways with trade and technology ties rather than rely on one-off measures.

The H-1B visa remains a core channel for US employers in fields like software, data, engineering, and health tech. For official program details, see the US government’s guidance on the USCIS H-1B Specialty Occupations page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.

The new fees do not change the legal definition of the category, but they raise the cost of entry to a level that could reshape hiring plans, subcontracting structures, and the use of international delivery centers.

Impact on applicants and industry

• Employer sponsorship willingness: The immediate concern is whether employers will sponsor under the new cost structure.
  • Large firms with urgent skill needs may continue to file and pass some cost through contracts.
  • Smaller firms may hesitate, reducing opportunities for early-career professionals who rely on employer sponsorship for their first US role.
• Existing visa holders and renewals: Not directly affected — renewals proceed under existing cost structures.

• Indian IT firms’ likely responses:
  • Increase US hiring to reduce visa exposure (trend already underway).
  • Include immigration cost-sharing clauses in client contracts.
  • Shift more work offshore to avoid new filing costs.
• Sectoral effects: Projects that need specialized skills (AI, cybersecurity, advanced manufacturing, cloud infrastructure) may still justify sponsorship, but the barrier is higher.

• Higher education and talent flows: Universities warn that if new graduates see fewer sponsorship prospects, they may choose alternative destinations like Canada 🇨🇦, shifting the global talent map.

“Workforce mobility is tied to trade rules and technology flows,” Jaishankar said, arguing that if companies can sell products and move data cross-border, they will also push for a workforce that can follow the work.

Who gains and who loses

• Likely to continue filing:
  • Large firms with immediate, hard-to-fill needs and deep pockets.
• Likely to reduce filings:
  • Smaller and mid-size employers with tighter budgets.
  • Employers relying on early-career hires who cannot absorb the $100,000 cost.
• Potential broader effects:
  • Faster acceleration of onshore hiring by Indian firms.
  • Increased use of offshore teams and subcontracting reconfiguration.
  • Possible displacement of investment or projects if sponsors cannot absorb costs.

Legal and practical guidance for applicants

• The fee applies to new cases filed on or after the effective date. Applicants already in the pipeline should:
  1. Monitor employer communications closely.
  2. Confirm whether their employer intends to file before or after September 21, 2025.
  3. Consult immigration counsel for case-specific advice.

• Renewals and existing H-1B holders should expect current cost structures to remain applicable for their renewal filings.

Political and economic context

The policy comes amid election-year scrutiny of immigration in the US and high-profile layoffs that have increased political attention on visas. In India, the H-1B program is a pathway to global careers; sudden changes can disrupt family and company plans. Diplomats from both countries are likely to continue discussions, but for now the September 21, 2025 effective date stands, forcing employers and applicants to adjust quickly.

Supporters of the overhaul argue:
– If a role is truly scarce, employers will pay; otherwise, they should train or hire locally.

Critics counter:
– The fee is too blunt, undermines competitiveness, slows projects needing niche skills, and could push investment elsewhere.

Both sides agree the current system is strained. Jaishankar’s core message—that a global workforce will endure—frames the tension: even as fees rise and rules tighten, companies and workers will seek paths that match skill with need. The policy goal, he suggested, should be to manage that flow with fair rules, clear wages, and efficient processing — not to block it outright.

Key takeaway: The H-1B fee overhaul is a high-stakes test of whether policy can meet business demand without endangering US workers — and whether global labor mobility can be regulated in line with modern trade and technology linkages.