How Indian IT industry and IT techies will be effected by Trump’s new H1B visa policy and immigration ban?

In 1950s USA administration accused ethnic Chinese Qian Xuesen, a leading expert in rockets, a full professor at MIT (1947) and at CIT(1949) and a colonel at the U.S. Dept. of Defense, of communist sympathies, without presenting any evidence. He spent 5 years under house arrest in an effort to gradually make his technical knowledge obsolete. USA administration then sent him back to China in 1955. Upon his return, he helped greatly in making China a nuclear power. China exploded nuclear bomb in 1962. He was known in China as one of the fathers of nuclear bomb.

Now with a steep hike in H1B visa fees, USA is trying to strongly resist entry of new and brilliant STEM (Science Technology Engineering Maths) minds into USA to protect native American jobs. These native Americans are the core vote base of Donald Trump. They have been complaining that H1B visa holders are replacing them from jobs. But this is only partly true as there can be misuse of the system.

Elon Musk is the richest man in USA who is foreign born and created innovative tech companies in USA

The reality is H1B visa created the tech industry in USA. USA benefiting globally with their tech industry innovation, revenue and corporate valuation. Indians are the biggest beneficiary of H1B visa with more than 71% issued to Indian over the years. The IT job boom started in mid-1990s with Y2K projects, then dotcom boom and followed by others. This boom lasted more than three decades and hence USA native Americans are now scared of Indian tech power. Indians living in India always complained and lamented about this brain drain.

Now Donald Trump tried his best to stop this brain drain from India. Those Indians where on H1B visa but didn’t have green card will come back. They will struggle for few years in India due to lack of opportunity in India and will be compelled to work below their potential. But these people will help create ‘Silicon Valley 2.0’ in India and help India move up in value chain.

One has to remember that China has their own version of Whatsapp, Twitter (X), Facebook, Google, Microsoft etc. but India has none. For more than three decades, Indian IT excelled in services and failed miserably in building products. Now the large pool of STEM students will look elsewhere for higher studies (Europe etc.) and will focus on building tech products and brands like Microsoft, Cisco, Facebook, Tesla etc. in India. Trump’s visa policy will backfire.

Picture source: Google / Respective rightful owner

Trump's H-1B visa fee hike: TCS, Infosys to Wipro — is it opportune to buy IT stocks for long-term? | Stock Market News

Trump's H-1B visa fee increase: Despite short-term challenges, experts believe long-term opportunities exist due to the India-US trade deal and US Fed rate cut optimism

https://www.livemint.com/market/stock-market-news/trumps-h-1b-visa-fee-hike-tcs-infosys-to-wipro-is-it-opportune-to-buy-it-stocks-for-longterm-11758953236779.html

‘Afraid of our talent’: India hits back against Trump’s H1-B visa fee hike

India has been one of the largest beneficiaries of H-1B visas, accounting for 71% of approved visas in 2024

https://www.theguardian.com/world/2025/sep/22/trump-india-h1-b-visa-fee-hike-response-afraid-of-talent

JPMorgan’s top economists warn on H-1B visa fee hike: ‘Could slash 5,500 work visas monthly’ | World News - The Times of India

US News: JPMorgan economists foresee a potential reduction of 5,500 work authorizations monthly due to President Trump's $100,000 H-1B visa fee. This could det

https://timesofindia.indiatimes.com/world/us/jpmorgans-top-economists-warn-on-h-1b-visa-fee-hike-could-slash-5500-work-visas-monthly/articleshow/124105708.cms

US H-1B visa fee change prompts countries’ attention on reverse brain drain

H-1B visa Photo: VCG The US government's recent move to increase visa fees for highly-skilled foreign workers have prompted countries to seize the opportunity to attract professionals and bolster domestic industries, according to multiple media reports. On Friday, US President Donald Trump signed an executive action to impose a $100,000 application fee for H-1B visas, according to CNN. These visas, which require at least a bachelor's degree, are meant for high-skilled jobs that tech companies find difficult to fill, AP News reported. Although the move is seen as a direct hit to US-bound skilled professionals, especially from India, which accounted for 71 percent of approved H-1B beneficiaries last year, a report by The Economic Times raised the question: "Could this be the moment when India turns its long-lamented 'brain drain' into 'brain gain?'" For years, policymakers and economists in India have worried about the continual exodus of top talent. If this outflow slows down by the clampdown on H-1B visas, India stands to benefit significantly, the Indian media outlet noted. Not only India, but other countries including South Korea are aiming to take advantage of the move to lure foreign scientists and engineers, boosting their domestic industries and reversing an exodus of talent, Reuters reported. South Korean Presidential Chief of Staff Kang Hoon-sik stressed with regard to the US administration raising the professional work visa fee that "plans should be prepared to use this as an opportunity to attract global STEM talent to Korea," South Korean media outlet Chosun Biz reported on Monday. Also, British Prime Minister Keir Starmer is exploring proposals to abolish some visa fees for top global talent at a time when the US has moved sharply in the other direction, The Financial Times (FT) reported. According to the report, the reforms were being discussed before the Trump administration announced the new fee, but one person involved in the UK discussions said the US decision had put "wind in the sails" of those pushing for changes to Britain's high-end visa system. "The new US policy could be an opportunity for Germany and Europe to attract top talent," the head of Germany's digital association Bitkom, Bernhard Rohleder, also said, per Reuters. Regarding US policy change on the application fee, Chinese Foreign Ministry spokesperson Guo Jiakun said on Monday that "we have no comment on the US' visa policy." In reply to a question on China's policies on attracting foreign tech talents, Guo said that in a globalized world, cross-border flow of talents is instrumental in global technological and economic advancement. China welcomes talents from various sectors and fields across the world to come and find their footing in China for the progress of humanity and career success. In August, China announced it would add a K visa to its ordinary visa categories, available to eligible young science and technology professionals, according to the Xinhua News

https://www.globaltimes.cn/page/202509/1344266.shtml

US H-1B visa fee change prompts countries’ attention on reverse brain drain

H-1B visa Photo: VCG The US government's recent move to increase visa fees for highly-skilled foreign workers have prompted countries to seize the opportunity to attract professionals and bolster domestic industries, according to multiple media reports. On Friday, US President Donald Trump signed an executive action to impose a $100,000 application fee for H-1B visas, according to CNN. These visas, which require at least a bachelor's degree, are meant for high-skilled jobs that tech companies find difficult to fill, AP News reported. Although the move is seen as a direct hit to US-bound skilled professionals, especially from India, which accounted for 71 percent of approved H-1B beneficiaries last year, a report by The Economic Times raised the question: "Could this be the moment when India turns its long-lamented 'brain drain' into 'brain gain?'" For years, policymakers and economists in India have worried about the continual exodus of top talent. If this outflow slows down by the clampdown on H-1B visas, India stands to benefit significantly, the Indian media outlet noted. Not only India, but other countries including South Korea are aiming to take advantage of the move to lure foreign scientists and engineers, boosting their domestic industries and reversing an exodus of talent, Reuters reported. South Korean Presidential Chief of Staff Kang Hoon-sik stressed with regard to the US administration raising the professional work visa fee that "plans should be prepared to use this as an opportunity to attract global STEM talent to Korea," South Korean media outlet Chosun Biz reported on Monday. Also, British Prime Minister Keir Starmer is exploring proposals to abolish some visa fees for top global talent at a time when the US has moved sharply in the other direction, The Financial Times (FT) reported. According to the report, the reforms were being discussed before the Trump administration announced the new fee, but one person involved in the UK discussions said the US decision had put "wind in the sails" of those pushing for changes to Britain's high-end visa system. "The new US policy could be an opportunity for Germany and Europe to attract top talent," the head of Germany's digital association Bitkom, Bernhard Rohleder, also said, per Reuters. Regarding US policy change on the application fee, Chinese Foreign Ministry spokesperson Guo Jiakun said on Monday that "we have no comment on the US' visa policy." In reply to a question on China's policies on attracting foreign tech talents, Guo said that in a globalized world, cross-border flow of talents is instrumental in global technological and economic advancement. China welcomes talents from various sectors and fields across the world to come and find their footing in China for the progress of humanity and career success. In August, China announced it would add a K visa to its ordinary visa categories, available to eligible young science and technology professionals, according to the Xinhua News

https://www.globaltimes.cn/page/202509/1344266.shtml