When The New York Times recently declared that “Trump’s H-1B Visa Fee Knocks Down Bridge Between India and the U.S.,” it was more than a headline—it carried an insinuation that India’s progress depends on how many visas its citizens secure abroad. The framing suggests that fewer H-1B workers would mean fewer remittances flowing into India and weaker ties between Indian and American companies.
But is this truly the model of national growth that India should aspire to—sending its best and brightest overseas to build another nation while depending on the money they send back?
In this article, I look at why such a vision is misplaced and also examine the larger issues around the H-1B system, including its abuses, flaws, and the implications of Trump’s proposed changes.
H-1B Is an American Policy, Not an Indian Weakness
The H-1B program is a U.S. domestic policy designed to serve American labor market needs. If Washington decides to increase fees, alter quotas, or tighten eligibility, it does so according to its own priorities, not as an attack on India. To treat it otherwise risks portraying India as if its destiny hinges on U.S. immigration policy, when India’s future must rest on the strength of its own innovation and opportunities.
The Real Issue: Media Narratives
The real problem is not the fee itself—it is the narrative. When global media outlets portray India as dependent on American visas for survival, they diminish the dignity of Indian talent and reinforce outdated stereotypes of India as a labor colony. India’s global contributions extend far beyond coding jobs or contract labor. From space exploration to startups, from cultural influence to global diplomacy, India is carving its own place in the world.
Indian Americans Are Americans First
Recently, Dr. Shashi Tharoor remarked that Indian Americans should be more vocal in pressing U.S. policymakers on India’s behalf. While well-intentioned, such appeals overlook a simple truth: Indian Americans are Americans first. They carry U.S. passports, raise children in American schools, and compete for American jobs.
Many Indian-origin professionals—citizens and green card holders—are themselves unemployed or underemployed today. They understandably prefer that opportunities go first to those already here before new visa holders arrive from abroad. Asking them to lobby primarily as representatives of India, rather than as Americans, underestimates both their responsibilities and the meaning of citizenship.
The Missing Link: Dual Citizenship
This also highlights a larger point often overlooked in India’s diaspora policy. For decades, Indian Americans have asked New Delhi for dual citizenship, but India has consistently refused. The OCI card is not citizenship; it provides limited rights but denies voting, political participation, and a real stake in India’s future.
Jewish Americans lobby powerfully for Israel because Israel embraces them fully with dual citizenship. India, by contrast, has kept its diaspora at arm’s length—welcoming remittances and investments but denying political rights. Until India recognizes its overseas community as true stakeholders, it should not expect them to act as a political lobby in Washington.
Why the Panic Is Misplaced
Much of the panic over Trump’s proclamation is based on misunderstanding. In reality:
- Existing H-1B holders, renewals, and transfers are not affected.
- The new $100,000 fee applies only to petitions for workers outside the U.S. at the time of filing.
- Students already in the U.S., current H-1B workers, and intra-U.S. transfers are exempt.
- The measure is temporary (12 months unless extended) and contains national-interest exceptions.
In practice, this favors those already in the U.S.—graduate students, existing H-1B workers, and skilled employees waiting for permanent roles—over those abroad.
The Frauds and Flaws in the H-1B System
For years, the H-1B system has been plagued by abuse. Fake resumes, inflated years of experience, forged certificates, and proxy interviews have often slipped past employers. Consulting firms exploited both employees and the system, benching workers illegally while undercutting wages. Many H-1B holders assimilated poorly, sometimes displaying arrogance rather than appreciation for the opportunities offered.
Layered on top of this was the absurdity of the H-1B lottery. Every April, companies had to predict the exact skills they would need for jobs starting in October. Even when petitions were selected, delays and Requests for Evidence pushed approvals far past start dates. This system encouraged speculative mass filings by third-party consulting companies, not real workforce planning by U.S. employers.
The consequences have been visible. In 2015, companies like Disney and Southern California Edison faced public criticism for laying off American IT staff and replacing them with H-1B contractors, often brought in by Indian outsourcing firms. Such cases made the program deeply unpopular and showed that the problem was not theoretical.
Importantly, Indians do not account for all H-1Bs. In FY2022, they made up about 74 percent of new approvals, Chinese nationals about 12 percent, with the remainder spread across many countries. Yet the debate is heard almost entirely as if it is an “India issue.” That distortion reflects how dependent India has become on this pathway.
India’s Path Must Be Inward, Not Outward
It is time for India to stop measuring success by how many young people secure U.S. work permits. For decades, Indian IT professionals sought opportunities abroad while many of China’s best students returned home. Between 1978 and 2020, more than 5.8 million Chinese students studied abroad and about 85 percent returned, fueling companies like Huawei, Tencent, and TikTok.
India, by contrast, relied on remittances rather than building its own innovation ecosystem. The result is clear today. China has global consumer platforms; India does not. The U.S. accounts for nearly 50 percent of global AI investment, China about 30 percent, the EU about 15 percent. India contributes barely 2 to 3 percent. For a country with a billion people and a vast IT workforce, this is a glaring failure of vision.
Leaders like Shashi Tharoor and Prime Minister Modi would serve India better by addressing these structural weaknesses at home rather than urging citizens to seek validation abroad. India’s strength must come from building opportunities within.
A Call for Balance and Respect
Trump’s H-1B fee should be viewed in context. It is not aimed at India but at fixing a flawed system. India, meanwhile, must recognize that its future will not be secured through remittances or overseas visas but through bold reforms and innovation at home.
The India–U.S. relationship should be built as a partnership of equals, not reduced to a visa policy debate. Both nations stand to gain when talent flows freely, but only on terms that are fair, transparent, and respectful.
Disclaimer: Opinions expressed are solely those of the author and not necessarily reflect the views of financialexpress.com.
Vinson Xavier Palathingal is an engineer, entrepreneur, exporter, and policy advocate based in Florida and Washington, D.C. He is Executive Director of the Indo-American Center and has been active in U.S.–India relations, education reform, and immigrant community leadership for more than three decades. In 2020, he was appointed by President Donald J. Trump to the President’s Export Council.