Virendra Pandit
New Delhi: With US President Donald Trump hiking the one-time H-1B visa fee to USD 100,000 for those seeking jobs, Britain and China have smelt an opportunity to attract global talents. But India’s NASSCOM said the visa fee hike will have only a marginal impact on Indian IT sector’s growth.
According to media reports on Monday, China has announced a new visa category to lure young science and technology talent. Beijing’s ‘K visa’ will be available to eligible young science and technology professionals.
China’s Premier Li Qiang has signed a decree to promulgate the decision to amend the regulation on the administration of foreigners’ entries and exits, news agency Xinhua said, adding the new rules will take effect on October 1.
The K visas will allow multiple permitted entries, validity period and duration of stay. The holders will be allowed to engage in exchanges in fields such as education, culture, and science and technology, and relevant entrepreneurial and business activities. They will not require a domestic employer or entity to invite them, and the application process will also be more streamlined.
As of July, China had introduced unilateral visa-free entry or mutual visa-exemption agreements with 75 countries.
British Prime Minister Keir Starmer is also exploring proposals to abolish visa fees for top global talent, the Financial Times reported. The discussions were already underway before the Trump administration announced its decision to impose a USD 100,000 fee for new H-1B visas, with effect from September 21.
Starmer’s global talent taskforce is developing ideas to draw the world’s best scientists, academics and digital experts to Britain to drive economic growth. His officials are exploring a zero-fee system for applicants who have studied at the world’s top five universities or won prestigious prizes.
Britain currently charges £766 (USD 1,030) for the Global Talent visa, with partners and dependants paying it.
In June 2024, the UK launched a global talent taskforce backed by a £54 million Global Talent Fund to attract science and technology professionals. The Department for Science, Innovation and Technology said the taskforce would support researchers, entrepreneurs, investors, senior engineers and creatives.
Peter Kyle, UK Secretary for Science and Technology, said: “My message to those who are advancing new ideas, wherever they are, is simple: we want to work with you, to support you, and to give you a home where you can make your ideas a reality we all benefit from.”
The UK’s universities will use their networks to connect Britain with leading researchers and innovators.
Unlike most US work visas, the Global Talent visa does not require a job offer or employer sponsorship. Fast-track entry is available to those endorsed by approved bodies.
Meanwhile, India’s National Association of Software and Service Companies (NASSCOM), representing IT sector, said the US visa fee-hike may have a marginal impact on the Indian IT companies. With the fee being applicable from 2026 onward, companies have time to further expand skilling programs in the US and enhance local hiring.
“The clarification makes it clear that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions. This has helped address the immediate ambiguity surrounding eligibility and timelines. It alleviates concerns about business continuity and uncertainty for H-1B holders who are outside the US.”
The industry body said the White House’s clarification that the higher fees for H-1B visa applications would apply only to new applications has helped reduce uncertainty. Its impact will be marginal on Indian IT firms, it said, noting that Indian and India-centric firms operating in Washington have already significantly reduced their reliance on H-1B visas.
“Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependence on H-1B visas and steadily increased their local hiring. As per available data, H-1B visas issued to leading Indian and India-centric companies have decreased from 14,792 in 2015 to 10,162 in 2024,” NASSCOM said.
“H-1B workers for the top 10 Indian companies account for less than 1 percent of their entire employee base. Given this trajectory, we anticipate only a marginal impact on the sector,” it added.
The industry is spending more than USD 1 billion on local upskilling and recruitment in the US, and the number of local hires has increased significantly.
Following the fee hike, companies like Microsoft, JPMorgan, and Amazon, urged its employees not to leave the US and advised those on H-1B visas outside the US to return before midnight on September 20. However, the White House clarification helped ease concerns.