US H-1B visa controversy: crisis for Indian diaspora, opportunity for India
America’s new H-1B visa fee isn’t just an immigration policy issue, but a reflection of global economic dynamics. While it has increased insecurity among the Indian diaspora, it also offers an opportunity for India to reverse brain drain. If the experience, networks, and technical skills of returning professionals receive the right policy support, India’s startups, research, and Atmanirbhar Bharat campaign could be energized. By turning this challenge into an opportunity, India will not only utilize its talent pool but also emerge stronger in global value chains.
Recently, the United States has made a major change to its much-anticipated H-1B visa policy, proposing a hefty fee of US$100,000 on new applications. This decision is not merely a matter of immigration policy, but also reflects changing global economic dynamics and deeper labor market dynamics. Indian professionals, who until now constituted approximately seventy percent of H-1B visa holders, are directly affected by this move. However, this crisis could also bring opportunities for India. If the returning talent, i.e., reverse brain drain, is utilized properly, it could prove to be a historic milestone towards a self-reliant India.
The H-1B visa has long been the backbone of American technology companies. Major companies like Google, Microsoft, and Amazon employ a large number of Indian IT professionals. However, protectionist tendencies and economic nationalism are now becoming apparent in the United States. Under pressure to satisfy their domestic workforce, developed countries are reducing their reliance on foreign talent. This is a paradoxical situation, as the American labor market lacks sufficient domestic resources in high-tech fields, yet political pressure is forcing it to restrict foreign arrivals.
The United States does not view immigration solely as a matter of labor mobility, but also uses it as a trade tool. Such an increase in visa fees will not only generate revenue but also exert political pressure on other countries. Meanwhile, countries like Canada, the United Kingdom, and Australia are liberalizing their immigration policies. This directly implies that the geography of global talent competition is shifting, and the attractiveness of the United States may gradually diminish.
The impact of this policy change on the Indian diaspora is multifaceted. On the one hand, millions of families are facing job insecurity and uncertainty about their future. This is impacting children’s education, social life, and family stability. On the other hand, a positive aspect is also emerging in India. A large number of professionals will be encouraged to return to India. They will bring not only capital but also global experience, networks, and technical expertise. This could reinvigorate India’s start-up and unicorn ecosystem. Returning professionals will have an investor perspective and experience of international markets, which could further strengthen India’s entrepreneurial ecosystem.
Another major opportunity is that returning experts will significantly contribute to India’s research and development sector. Global competition is growing in areas such as artificial intelligence, biotechnology, quantum computing, and semiconductors. If returning scientists and engineers join Indian institutions, the pace of innovation in the country can accelerate. This will provide a real boost to the Atmanirbhar Bharat campaign. Furthermore, initiatives like Digital India and Make in India will be strengthened by the talented professionals who bring advanced technological experience from abroad.
For India, this is not the time to simply wait and watch, but to take concrete policy action. The government must develop special plans to welcome returning talent. For example, under the Returning Talent Scheme, professionals returning from abroad can be provided with tax breaks, investment incentives, and special start-up packages. High-level research laboratories and innovation centers can be developed to foster collaboration between universities and industry. The private sector can be provided with tax concessions and incentives to increase investment in research and development. Additionally, it will be necessary to strengthen the financial ecosystem by linking venture capital and private equity funds with the experience of expatriate professionals.
Social rehabilitation programs for returnee migrants and their families are equally important. If they face difficulties while settling in India, their talents will not be fully utilized. The government must provide them with access to basic services such as education, health, and housing so that they can seamlessly integrate into society and the economy.
Thus, the H-1B visa controversy presents a dual challenge for India. On the one hand, there is concern about the livelihoods and futures of millions of Indian expatriates, while on the other, this crisis also presents a golden opportunity for India. If India seizes this opportunity and turns reverse brain drain into its strength, the vision of a self-reliant India will gain new direction and energy. The crisis reminds us that self-reliance is not achieved through mere slogans, but through visionary policies and the ability to seize global opportunities.
