BENGALURU: Recent changes by the Trump administration regarding the H-1B visa have brought mixed reactions among Indian professionals and students in the United States. The administration has exempted existing visa holders and foreign students already in the U.S. from the previously announced $100,000 fee for H-1B applications. This decision is seen as a significant relief for many, especially for Indian students transitioning from F-1 to H-1B status.

The Global Trade Research Initiative (GTRI) highlighted that this exemption allows thousands of Indian students and skilled professionals to move to work visas without incurring high costs. Indians represent nearly 70% of all H-1B visa holders and 27% of international students in U.S. universities, making them the largest group to benefit from this change.

Phil Fersht, CEO of HFS Research, noted that the new rules indicate a shift from volume-driven to value-driven visa policies. He stated, "The message is clear: the US wants fewer imported coders and more onshore AI engineers and domain experts." This shift may push Indian IT companies to invest more in local talent, as their reliance on H-1B visas has decreased over time.

However, the relief comes alongside new restrictions on foreign student admissions. A cap has been introduced, limiting foreign students to 15% of total university intake, with a maximum of 5% from any single country. This change could significantly affect Indian students aspiring to study in the U.S. and later secure work visas. GTRI warned that these measures create a contradictory situation, facilitating visa transitions for those already in the U.S. while tightening entry for new students.

Vivek Wadhwa, CEO of Vionix Biosciences, described the initial panic surrounding the H-1B fee as exaggerated, stating, "It created a big panic for a month and as it turns out there was nothing to worry about." Meanwhile, Stephen Yale-Loehr, a retired professor of immigration law, pointed out that the impact of the new fee structure would be limited, affecting only a small number of H-1B applications.

As Indian IT firms adapt to these changes, they are increasingly hiring locally or in nearby regions like Latin America. Currently, around 80% of the workforce at companies like Wipro consists of local hires. Infosys and TCS have also reported that only a small fraction of their employees utilize immigration services for H-1B visas.

In summary, while the exemption from the H-1B fee offers immediate relief to many Indian professionals and students in the U.S., the new caps on foreign student admissions may pose challenges for future talent flow from India to the United States. The evolving immigration policies continue to create uncertainty for Indian IT firms and aspiring professionals.