Trump’s H-1B Fee Threatens India’s IT Firms and Big Tech Business Models

• The Trump administration has imposed a $1,00,000 annual fee on H-1B visas, aimed at obliterating the business models of India’s IT giants and Big Tech’s wage arbitrage schemes.

• The fee is intended to leave the U.S.’s universities and startups standing, but its impact on the U.S.’s innovation ecosystem remains uncertain.

• H-1B workers now account for 65% of America’s IT workforce, up from 32% in 2003.

• The fee makes the lottery system prohibitively expensive, forcing Indian IT firms to either raise prices dramatically or retreat to offshore delivery models.

• American technology companies will face their own reckoning, as each hire becomes a significant capital allocation requiring executive approval.

• The policy’s collateral damage may be severe, as international students contribute over $40 billion annually to America’s economy, with more than half pursuing STEM fields.

• The $1,00,000 fee signals a considerable dimming of these individuals’ prospects in the U.S. post-graduation.

• The policy’s design reflects a preference for simplicity over sophistication, resulting in a severing of connections between American institutions and international talent pools.

• The policy may accelerate trends it ostensibly seeks to reverse, potentially reducing employment opportunities for U.S. workers.

• The fee structure may inadvertently benefit the largest technology companies at smaller firms’ expense, potentially concentrating talent among established players rather than distributing it throughout the innovation ecosystem.

• The administration’s approach reflects a broader philosophical shift from balancing corporate needs with talent attraction toward prioritising domestic workers.

H‑1B fee threat is important topic for Civil service exam (WBCS).

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