While the risks to the Indian services sector from the US government’s decision to levy a one-time fee of $100,000 on new H-1B visa applicants “appear manageable”, they are there and need to be closely monitored, the Ministry of Finance said on Friday. It added that states need to implement “targeted deregulation” to reinforce the economy’s growth prospects.

“The decision by the US government to impose a fee on new H-1B visa-seekers is a reminder of the risks of trade uncertainties affecting the hitherto unaffected services sector. For now, the risks appear manageable, but they are there,” the finance ministry said in its Monthly Economic Review report for August.

Indians are the biggest beneficiaries of the H-1B visa, of which 65,000 can be issued in a year with a further 20,000 petitio

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