A recent topic of discussion these days has been the changes implemented by US President Donald Trump on the H-1B Visa Fee. For context, the USA increased the H1B via fee $100,000 fee on H-1B visas.
This, according to the administration, is aimed at ensuring that only “extraordinarily skilled” individuals gain entry into the country, while discouraging companies from relying on foreign professionals to replace American workers. The White House has made it clear that this is among the “most abused” visas.
The announcement sparked panic back home. As of September 22, shares of India’s IT companies, including Persistent Systems, Tech Mahindra, LTIMindtree, Mphasis, and Coforge, as well as large-cap names like TCS, Infosys, and HCLTech, fell between 3% and 6%.
With regards to H1B visas, around 71 per cent of the holders are Indians. This visa has been time and again used by IT companies to recruit Indian professionals in the USA.
What this ultimately fuels is a steady brain drain. By the end of 2024, Indian-origin executives were at the helm of 25 of America’s 500 largest companies, more than double the count of just 11 in the early 2010s.
The outflow is reflected in citizenship data as well. The Ministry of External Affairs reported that a record 2,25,620 Indians gave up their nationality in 2022, up sharply from 1,63,370 in 2021. Even in 2020, when global movement was largely frozen by the pandemic, 85,256 Indians still surrendered their passports. A decade ago, the numbers averaged closer to 1,20,000 each year.
This concern has been discussed by Indian officials as well. Arvind Virmani, member of NITI Aayog and a former chief economic adviser (CEA), said earlier, “Independent India never built its talent pyramid from the ground up. Instead, we started at the top, investing in elite institutions while neglecting primary and secondary education.”
However, today, the country wants its young minds to come back. At least that is the intent. This is what was discussed in Outlook Business’s cover story in March. It says, “India no longer wants to play catch-up; it wants to lead. In technology, energy, and beyond, the country is setting its sights on the frontiers of innovation, framing itself as a nation on the cusp of a significant transformation. By 2047, the centenary of its independence, India aims to join the ranks of developed nations.”
Reverse Brain Drain?
Many experts highlight that the H1B visa fiasco, might be a blessing in disguise for the country. It will be a step for young minds to come back, they highlight. As Nikesh Jain, co-founder, Edurigo Technologies points out over LinkedIn, “Brain drain will stop and some of these smart people will start building similar cutting edge products from India. In general India software eco system will get access to Indian brains at a reasonable cost to build in India.”
However, the country has a lot to focus on with its infrastructure to stop this brain drain. For more details, check out our story- India’s Brightest Minds are Leaving to Make America Great Again—Can Govt STEM the Exodus?
