Trump’s H1B Squeeze

It’s a complex scenario. Prime Minister Narendra Modi, in his Independence Day speech, announced a `1 lakh crore job-generation plan through EPF incentivisation. A welcome move—yet not an alternative to the Donald Trump–led assault on the H-1B visa. It needs an out of box solution.
This could be an indigenous way to create jobs, but it needs far more ingenuity. The focus must be on revitalising industry, ensuring fair wage policies, and securing long-term employment. India must evolve a system capable of generating enough quality jobs to counter U.S. arm-twisting on the visa issue.
The H-1B debate is now particularly critical for low-paid jobs. Highly skilled applicants at higher wage levels (Level 3 and 4) may still secure better deals, but U.S. corporate preference for low-wage Indian hires over American workers has triggered political pushback. Complaints have mounted over the years, and any U.S. president—Trump or otherwise—might have acted similarly.
India also needs to create conditions that keep its IIT graduates, thriving on taxpayers’ money, and other top talent from flocking abroad. The government spends Rs10–15 lakh per student during a four-year IIT BTech programme, with the total IIT budget for FY 2024–25 at Rs 9,660 crore. Yet 30–36 percent of IIT graduates migrate each year, according to LinkedIn and Threads data, and a National Bureau of Economic Research (NBER) study. Among those who remain, an estimated 70 percent work for foreign MNCs like Google, Amazon, Microsoft, and McKinsey within India.
Indian nationals dominate the programme, receiving 72 per cent of H-1B visas, followed by 12 per cent for Chinese citizens. The majority of H-1B visa holders work in STEM fields like data science, AI, machine learning, and cybersecurity, with 65 per cent in computer-related jobs. Their median annual salary was (about Rs 1.01 crore) annually.
The US visa-type problems could crop up anywhere. The UK has also put its foot down on jobs till the free trade agreement with India comes into force.
India needs to retain its talent pool not by force or new laws but by making job conditions better than elsewhere. Narayan Murthy of Infosys suggesting 70-hour weekly shifts or S.N. Subrahmanyan, the chairman of L&T, suggesting a 90-hour work week without a weekly off, for Indian professionals have been doing great disservice to Indian techies.
The country needs to restore 48-hour week, 8-hour a day, instead of the amended Industrial Disputes Act’s impractical 12-hour shifts. Such draconian moves would promote brain drain and invite ignominy to Indian workers world over.
Can India solve the high denial rates—peaking under the Trump administration— though recent years have seen a relative dip? In FY 2024, the denial rate for initial H-1B petitions dropped to about 2.5 percent, down from approximately 3.5 percent in FY 2023 and as low as 2.2 percent in FY 2022.
Despite this welcome trend, a more restrictive policies under a renewed Trump presidency re-escalates denial rates. The Donald Trump administration is replacing the traditional H-1B visa lottery with a wage-based selection system. Looks like H1B visa will not be given to level 1 entry level jobs which means freshers with zero work experience and with degree in US universities may never get their visa and will be disqualified.
So most of start-ups can’t afford to hire H1B and most of international students can’t be hired for entry level jobs.
Systemic Bias?
The U.S. Equal Employment Opportunity Commission (EEOC) has issued warnings against hiring practices that disproportionately favour migrant workers—a practice that may amount to national origin discrimination. One high-profile case involved Tata Consultancy Services (TCS), where American professionals filed complaints alleging they were replaced by lower-paid Indian H-1B workers based on race and age—a practice they argue violated U.S. civil-rights law, the Wall Street Journal reports.
Similarly, Cognizant faced a U.S. jury ruling that found discriminatory treatment favouring Indian workers over other nationalities, with non-Indian applicants sidelined despite similar qualifications. On social media, former employees voiced concerns about these practices. One comment reads: “These individuals are given first — if not exclusive — preference for new U.S. positions, … Non-Indians are disproportionately relegated to the bench, as jobs are given to … Indians.”
This has evolved as a major issue creating public ire against Indians.
Uncertainty and Anxiety
That’s not the only issue. Beyond legal and ethical concerns, Indian H-1B visas issued for three years are associated with considerable anxiety over job stability and immigration uncertainty. A recent poll revealed that one in six NRIs on H-1B visas feel threatened by potential deportation amid fears of visa renewals and unpredictable U.S. immigration policies.
Tech companies—including Amazon, Google, and Microsoft—have reportedly advised H-1B employees to avoid international travel, fearing possible visa denials or re-entry issues. The prolonged green card backlogs, particularly for Indian nationals, further exacerbate stress and impact workforce morale, says The Washington Post.
Not Always “Cheap Labour”
Despite the stereotype of H-1B workers being “cheap labour,” data tells a different story. Average annual salaries for Indian H-1B professionals in tech hover around $132,000. In some engineering fields, H-1B workers actually earn more than U.S.-born peers. Additionally, visa sponsorship costs—including government and legal fees—can run up to $34,900, or even $50,000 when applying for permanent residency.
The H-1B visa dynamics are shaping a complex battleground—where legal scrutiny, worker vulnerabilities, and economic stakes intersect.
The EEOC warnings and past misconduct are harbingers of tougher times. How do we balance U.S. labour protection with fair treatment of Indian H-1B professionals who are highly skilled and contribute significantly to the economy—both in dollars and innovation?
As the policy pendulum swings, meaningful reform and equitable enforcement are critical. Ensuring that Indian professionals on H-1B visas are both protected from exploitation and evaluated on merit—not origin—will be vital in maintaining international competitiveness and ethical integrity.
The way out is that India itself creates an economy with high demand and opportunities absorbing talents in an industry that is humane and honours job laws and does not remain tucked to profit-making alone. It needs proper laws that ensure wages and job safety.
Once Indians, known for their mettle, are treated better at home, they are expected to be in demand across the world. India needs to revamp its labour laws and not scrap it for petty profits of the employers.