HYDERABAD: While US President Donald Trump’s decision to impose an annual fee of USD 100,000 on H-1B visas over its potential impact on the IT sector has been met with expression of concern from some quarters, some industry observers believe the move could benefit India by reducing brain drain and strengthening the domestic technology ecosystem.
Officials and experts also opined that the measure may be temporary and expressed confidence that it would not have a long-term effect on India’s IT sector.
Jayesh Ranjan, Special Chief Secretary, Investment and Industry (I&I) Cell, told TNIE “This decision by the US President could be a game changer for India, especially for the two Telugu states. More skilled professionals may now choose to stay or return to India, which will fuel domestic innovation, startups and economic growth, and help transform India into a global technology hub. This will mainly affect American companies and some Indian youths who prefer going to the US. With this, many will be motivated to stay back, and this reverse brain drain will strengthen economic opportunities, competitive wages and broader reforms.”
Dr Kanneganti Ramesh Babu, founder and director, Centre for Human Security Studies, and chairman, National Security Studies, a committee of experts formed by the UGC, said the visa fee hike was temporary but could still influence India’s IT sector.
“Though not permanent, this will be a massive game changer as many skilled professionals will be forced to return home. The talent density in India is gradually increasing. With students from engineering, medical and technology backgrounds usually heading to the US, this move underlines the need to build entrepreneurial capacity here,” he said.
Sai Krishna, IT Adviser to the Telangana government, echoed the view. He said the policy was in India’s best interest as it would help foster a strong domestic tech talent ecosystem. He added that as India grows slowly in all sectors, innovations and creativity would continue to move forward.