Could New H-1B Visa Rules Hurt The US? India Stands To Benefit Big, Say Experts

New Delhi: In a major policy change, US President Donald Trump has revised the H-1B visa rules, now requiring companies to pay at least USD 100,000 annually to each H-1B worker. This move is aimed at limiting the misuse of the program and giving priority to American workers. However, experts believe it could backfire on the US and benefit countries like India.

India Could See a Boost in Innovation

Amitabh Kant, CEO of NITI Aayog, said that by closing doors to global talent, the US may end up pushing innovation, patents, and startups toward Indian cities like Bengaluru, Hyderabad, Pune, and Gurugram. In an X (formerly Twitter) post, he noted that India has some of the best doctors, engineers, and innovators who can now contribute directly to the country’s development.

Donald Trump’s 100,000 H-1B fee will choke U.S. innovation, and turbocharge India’s. By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon . India’s finest Doctors, engineers,…

— Amitabh Kant (@amitabhk87) September 20, 2025

What Else Has Changed?

Besides the new salary rule, the Executive Order also brings stricter conditions for wages, affecting both new and renewal applications. The policy could indirectly promote the US’s ‘Gold Card’ visa program, which offers residency for a USD 2 million investment.

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India and China Most Affected

According to Reuters, India was the top receiver of H-1B visas, with a 71 percent share, followed by China at 11.7 percent. In early 2025, tech giants like Amazon, Microsoft, and Meta received thousands of H-1B approvals. Now, their hiring plans could be impacted.

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US Sectors May Feel the Pinch

The rule, effective September 21, could hit healthcare, higher education, and tech sectors hard. The number of foreign STEM workers in the US more than doubled between 2000 and 2019, showing the country’s heavy reliance on global talent.