H-1B Fee Hike to Hurt US More Than India, Says Priyank Kharge

The recent hike in H-1B visa fees may have dominated headlines, but the real impact will be felt more in the United States than in India, Karnataka IT Minister Priyank Kharge, posted on LinkedIn. He emphasised that Karnataka’s IT sector will remain resilient and continue to grow despite the policy change.

“Shutting the door on H-1Bs doesn’t create jobs for Americans. A Wharton study shows that for every 10 H-1B visas lost, nine jobs move abroad,” Kharge said, highlighting how restrictive visa measures often backfire on the US economy.

Industry studies support this view. With 66% of US companies outsourcing, nearly 3 lakh jobs leave the US each year, and the H-1B program has historically slowed this trend by keeping roles onshore. Experts estimate that a 10% cut in high-skilled immigrant workers could shrink US GDP by $86 billion.

For India, however, the fallout is limited. H-1B filings by Indian IT services firms have already declined by 50%, and such workers account for less than 1% of their overall workforce. Instead, this shift may accelerate offshoring and the expansion of global capability centres (GCCs) in India, nearly 40% of which are based in Karnataka and employ more than 6 lakh professionals.

“Karnataka’s IT ecosystem has the resilience, depth, and global trust to absorb such changes,” Kharge said, underscoring the state’s position as a global hub for technology and innovation.
Meanwhile, Telangana IT and industries minister Sridhar Babu posted on X that the state could be among the worst hit with the sharp rise in H-1B visa fees as it is expected to affect Indian professionals and remittance flows.