NewKerala.com

Key Points

Banking expert Ajay Bagga offers a contrarian view on the US H-1B visa fee increase. He believes the hefty $100,000 cost will ultimately reduce the brain drain of skilled professionals from India. Bagga suggests this will push the Indian government to find new ways to utilize this domestic talent. He also predicts major shifts in global business models as companies seek cost-effective alternatives.

Key Points: Ajay Bagga Says H-1B Visa Fee Hike Will Reduce India Brain Drain

  • Ajay Bagga views the $100,000 H-1B fee as a check on skilled professional exodus from India
  • The expert predicts a $14 billion extra cost burden for companies using H-1B visas
  • Bagga expects companies to outsource work or use offshore centers like Vancouver
  • The impact extends beyond IT to healthcare and financial services sectors
3 min read

H-1B visa fee hike will reduce India's brain drain: Mkt & Banking expert Ajay Bagga

Market expert Ajay Bagga argues the $100,000 H-1B visa fee will curb brain drain, forcing India to productively use its skilled talent pool.

"Brain drain will reduce, and India will have to find other avenues or productively use these people. - Ajay Bagga"

New Delhi, September 22

The United States' decision to impose a steep increase in H-1B visa fees has triggered concerns across Indian industries.

But banking and market expert Ajay Bagga has a different view. Speaking with ANI, Bagga said that the USD 1,00,000 fee for the H1B visa will check the brain drain from India. "Brain drain will reduce, and India will have to find other avenues or productively use these people. This will be an objective for the govt too," he said.

"There are approximately 16,000 Indian-origin doctors working in rural areas in the US. Wide regions in the US are benefiting from H-1B visas," Bagga noted.

He added that in the IT sector, major companies employ between 5,000 and 10,000 workers on H-1B visas. "They will try to outsource those works," he said, pointing to likely shifts in business models.

Bagga also noted that the impact will not be limited to the information technology (IT) sector alone. "There is an impact. Not only in the IT sector, there are also healthcare, doctors, nurses and other financial services companies," he said, pointing to the wide base of sectors that depend on foreign skilled workers.

US President Donald Trump, on Friday, announced a proclamation imposing a USD 100,000 annual fee on H-1B visa applications.

Bagga underlined the economic burden such a fee would impose if the policy continues at its announced pace. "If from next year the run rate of granting H-1B visas is the same, then there are about 14 billion dollars of extra costs, which the profit pools might not be there for those companies," he said.

The move, the US administration explained, is aimed at reducing what it sees as overuse of the programme and ensuring that only "highly skilled" workers are brought in from overseas. Officials believe the fee hike will create and protect jobs for American workers.

"Beneficiaries of this rule will be offshore centres like Vancouver and other nearby countries," Bagga noted, as firms look for cost-effective alternatives to manage their operations.

Earlier, US Commerce Secretary Howard Lutnick had elaborated on the change during a press call, saying the measure was part of a strategy to discourage the use of the visa for positions considered to be training roles.

The current costs for processing H-1B visas usually run into a few thousand dollars, meaning the sudden jump to USD 100,000 marks a significant shift. Companies will be required to pay this in addition to the existing vetting charges.

- ANI

Share this article:

Reader Comments

R
Rohit P
$100,000 is absolutely ridiculous! This is just protectionism disguised as policy. Many middle-class Indian families have dreams of sending their children to US for better opportunities.
A
Aditya G
Bagga makes a valid point about outsourcing shifting to other countries. Canada and Australia might benefit from this move. Indian IT companies need to adapt quickly.
S
Sarah B
As someone working in HR for an MNC, this will completely change our hiring strategy. We might have to set up more development centers in India itself rather than sending people to US.
K
Karthik V
The government should use this as an opportunity to create better research facilities and working conditions in India. Otherwise, talent will just go to other countries instead of US.
M
Michael C
While I understand the sentiment, calling it "brain drain" is unfair. Many Indians abroad send remittances and bring back valuable experience. It's a global exchange, not just drain.
N
Nisha Z
What about the 16,000 doctors serving rural America? This move will hurt healthcare access in remote US areas. Sometimes policies have unintended consequences 🤔

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50