(WASHINGTON, D.C., UNITED STATES) India’s Ministry of External Affairs said it is actively in talks with the United States over a proposed $100,000 H-1B fee on new visa petitions, as the policy moves through a formal rule-making process in Washington. Ministry spokesperson Randhir Jaiswal confirmed the outreach, saying New Delhi is in contact with the U.S. administration, India’s embassy in Washington, and industry groups to make sure the interests of Indian professionals are heard while the rule is still open for changes.
The proposal, which would apply only to fresh H-1B filings and not to renewals, has drawn immediate attention because Indian nationals historically receive more than 70% of all H-1B visas. Indian companies and U.S. employers that hire from India say the rule could reshape hiring plans and increase costs for talent entering the United States 🇺🇸. Jaiswal called it “an evolving situation,” underscoring that the final rule may not look the same as the first draft and that the ultimate impact remains unknown.
Rule-making timeline and comment period
According to the Ministry of External Affairs, the U.S. Department of Homeland Security has opened the rule-making to public comment for one month, giving businesses, universities, worker groups, and others a chance to submit feedback. That window will be a key test of how industry explains the downstream effects of a $100,000 upfront charge on each new H-1B petition.
The ministry has encouraged thoughtful input and reiterated that skilled worker mobility has helped both economies grow.
“The movement of talent between India and the United States drives new ideas, jobs, and competitiveness on both sides,” Jaiswal said, restating India’s long-held stance.
Diplomatic context and broader trade ties
The announcement landed amid existing trade strains between the two countries, including past tariff actions and pushback from both sides. Senior Indian officials raised trade, investment, and visa topics in recent meetings with U.S. counterparts during the U.N. General Assembly in New York, with the fee proposal now part of that wider conversation.
While New Delhi is not framing this as a single-issue dispute, the Ministry of External Affairs is signaling that the U.S. should consider practical effects on:
- Companies that depend on cross-border talent
- American teams that rely on hard-to-find skills
Jaiswal stressed that India is seeking clarity from Washington on both scope and timing.
Proposed effective date and scope
U.S. officials have indicated the $100,000 fee would be a one-time charge for new petitions and would not apply to renewals, amendments, or cases filed before the effective date.
- Current guidance referenced by Indian officials points to filings made on or after September 21, 2025.
- The rule is not final and could change following the comment period and internal U.S. reviews.
Who is most exposed
- Indian nationals received roughly 71% of approved H-1B visas in 2024, making Indian professionals the most exposed group if the fee moves forward as drafted.
- Small and mid-size firms could be disproportionately affected because they tend to have fewer hires over which to spread higher upfront costs.
Industry and stakeholder response
Industry groups in India and the United States are preparing for a busy month. VisaVerge.com reports that technology associations, startup forums, and professional networks plan to coordinate data-driven submissions explaining how higher upfront costs might affect:
- Hiring practices
- Client contracts
- Delivery timelines
They are expected to focus on small and mid-size firms, which often do not have deep reserves but still compete for highly skilled workers. Large employers with global operations may also highlight how the proposed H-1B fee would alter budgeting and timelines for projects serving U.S. customers.
Policy details and India’s diplomatic response
- The proposed $100,000 levy targets only new H-1B petitions, not renewals or existing approved cases.
- U.S. authorities have opened a one-month public comment period for feedback.
- Indian nationals received roughly 71% of approved H-1B visas in 2024.
- The Ministry of External Affairs has stepped up engagement with U.S. agencies and private-sector stakeholders to protect Indian workers’ interests, while flagging that the situation remains fluid.
Jaiswal emphasized that India views skilled mobility as a two-way strength, not a one-sided advantage. The ministry’s position is that:
- U.S. companies and research labs benefit from access to deep technical talent.
- Indian professionals gain global experience and send earnings home, supporting families and local economies.
He said the government remains hopeful U.S. officials will factor in those ties as they review feedback and decide whether to revise the draft.
Practical impacts on firms and workers
The stakes are not limited to multinational tech firms. Smaller Indian startups serving U.S. clients could face tough choices about where to place staff and how to budget for new hires.
For new graduates from Indian universities, the proposed fee could change the first steps of a planned career in the United States—especially for those relying on employers that hire only a handful of H-1B workers each year.
If the upfront cost chills new filings, some Indian professionals may look to other destinations, such as Canada 🇨🇦, parts of Europe, or Singapore, where employers sometimes find faster or cheaper pathways for high-demand roles.
Impact on applicants, employers, and the talent pipeline
The H-1B program allows U.S. employers to hire foreign workers in specialty jobs, typically requiring a bachelor’s degree or higher. The proposed H-1B fee would be on top of existing filing charges, legal expenses, and possible premium processing costs, raising the upfront price for each new hire.
Employers are already running scenario checks to gauge potential changes for 2025 and 2026 if the charge stays in place. Practical effects stakeholders are watching include:
- Budget compression for small and mid-size firms that can’t spread costs across many hires
- Possible delays in filling roles if companies pause to reassess priorities or funding
- Shifts in job offers toward candidates already in the United States 🇺🇸 or toward remote work outside the country
- Increased interest in alternative destinations, which could pull talent and investment away from U.S.-based teams
Indian officials plan to use diplomatic channels to highlight these ripple effects while avoiding framing the fee as a single trade issue. New Delhi wants Washington to see how the H-1B system supports joint growth in areas like:
- Cloud computing
- Semiconductors
- Health tech
- Clean energy
The ministry notes many U.S. communities depend on high-skilled workers for hospital systems, university research, and local startups, and that raising costs for new petitions could slow projects that help local economies.
Legal and implementation considerations
Several groups are discussing legal options if a final rule is issued without modifications. Possible actions include:
- Court petitions challenging the rule
- Requests for delayed implementation or phased rollouts
- Appeals for exemptions tied to public interest or acute shortages
Some observers expect requests for targeted exceptions—especially in areas facing acute shortages, such as parts of healthcare. Indian officials caution that any exceptions, if granted, would be decided by U.S. authorities and could be narrow in scope.
For workers, the ministry’s message is cautious but steady: watch for official notices, note deadlines, and plan with employers. Jaiswal’s statement that the situation is still evolving aims to reassure families that no one needs to make sudden moves before the rule is finalized.
If the U.S. government adjusts the draft—such as phasing in charges, tailoring them by employer size, or excluding certain roles—those details would shape how companies and applicants move forward. Stakeholders may also ask for “grandfathering” of candidates already in the hiring pipeline.
Where to find official information
For readers seeking official background on the visa category at the center of the proposal, the U.S. government’s H-1B overview explains the basic program framework and employer steps. That resource is available on the U.S. Citizenship and Immigration Services website: see the H-1B Specialty Occupations page at USCIS.
What to watch as the comment period unfolds
Watch for updates from the Ministry of External Affairs and from U.S. agencies on:
- The exact end date for public comments and any extension of the input window
- Clarifications on the scope of the H-1B fee, including precise categories covered
- Confirmation of the effective date, currently referenced as filings on or after September 21, 2025
- Any changes to the proposal following feedback from employers, universities, and worker groups
For now, India’s stance remains clear: engage, present data, and protect the interests of Indian professionals while stressing the shared gains of open, rules-based talent flows.
“We are closely following this evolving situation,” Jaiswal said, underlining that his office will keep working with the Indian embassy in Washington and with stakeholders across sectors. The ministry’s goal, he added, is to ensure that policy choices support growth, jobs, and fairness for both countries, and that employers can plan with confidence as the United States reviews public input and decides the final shape of the rule.
This Article in a Nutshell
India’s Ministry of External Affairs is engaging U.S. officials, its embassy in Washington, and industry groups about a proposed $100,000 fee on new H-1B petitions. The Department of Homeland Security opened a one-month public comment period; current guidance points to an effective date for filings on or after September 21, 2025. The fee would be a one-time charge for new petitions and would not apply to renewals or prior filings. Indian nationals—who received roughly 71% of H-1B approvals in 2024—would be particularly exposed. India is urging data-driven comments, exploring diplomatic channels, and noting possible legal or phased-implementation responses. Stakeholders worry higher upfront costs would strain small and mid-size firms, change hiring plans, delay projects, and push some professionals toward alternative destinations like Canada or Singapore. The MEA emphasizes skilled mobility’s mutual benefits and asks U.S. authorities to consider scope, timing, and targeted exceptions before finalizing the rule.
