Key Points

"After having suddenly escalated this issue, giving less than 24 hours practically speaking, over the weekend notice for stakeholders affected by this drastic move, they are trying to put toothpaste back in the tube," Sachdev said.

He added that American employers of H-1B personnel likely pushed back against the initial order, forcing the administration to limit its scope. "The American employers of H1B personnel would have strongly demonstrated to the administration, leading them to circumscribe the order by saying that it will apply only to the new entrants and would apply only once. So I believe it does put an outer bracket on the situation," he noted.

At the same time, Sachdev stressed that the core problem created by the original order remains unresolved. "It will hamper the free flow of personnel, most of them technically qualified from India, who are going to the United States because the United States needs them, but the United States want to have its own way, and the current administration seems to be very focused on the MAGA base, which believes that it has lost out on services," he said.

According to him, this perception is only partly accurate. "Far too many foreigners are coming and replacing United States workers, leading to unemployment in the United States IT industry. It's actually factually only partially correct. The United States IT industry has about 6 % unemployment among the US citizens, as compared to around 3 % for the general public of the United States," Sachdev explained.

He attributed much of the problem to rapid technological changes. "This is mainly because the IT industry is evolving very rapidly. And people with obsolete skills are no longer needed. They have to uh rewire themselves, acquire new knowledge, and this is what hampers unemployment," he said.

Sachdev emphasised that American companies require flexibility to innovate. "The companies won't like to wait; they would like to pursue their goal of innovation, and for that, if they need foreign experts, it's a double whammy. Either you train the locals and wait till they acquire the skills, or you get the skills from wherever they are available," he stated.

Against this backdrop, the United States has introduced a one-time fee of USD 100,000 for new H-1B visa applications, in a measure designed to further restrict the entry of foreign skilled workers.

The announcement, which took effect on September 21, initially triggered alarm among Indian professionals in the US, with several immigration lawyers and firms cautioning that H-1B holders and their families outside the country should return within 24 hours to avoid being stranded.

However, the White House later clarified that the new fee would apply only to fresh applicants and not to existing visa holders, offering relief to current beneficiaries of the programme.

- ANI