Recent increases in H-1B visa fees by the US government highlight an ongoing shift in how global labor markets operate. This change, often linked to a broader trend called deglobalization or protectionism, affects many skilled immigrants, particularly from India.
The H-1B visa, introduced in 1990, helps US employers fill roles when local talent isn’t available. It mainly covers jobs in science, technology, engineering, and mathematics (STEM). Originally designed to attract skilled workers, the H-1B program became a vital route for Indian professionals looking to work in the US.
India continues to be the biggest beneficiary of H-1B visas, making up 71% of applications approved in 2024. In contrast, China accounted for just 11.7%. However, the recent jump in fees—from $5,000 to as much as $100,000—could deter many US employers from hiring Indian workers and reduce opportunities for future applicants.
Experts warn that this policy could have broad implications for India’s $283 billion IT industry, which relies heavily on the US market. A drop in available jobs could hurt both employment in India and the remittances sent home by Indian workers abroad.
A significant consequence of these restrictive policies is an increase in undocumented migration. For instance, the number of illegal Indian immigrants in the US has grown from about 20,000 in 2019 to roughly 64,000 in 2022, indicating a fivefold increase. Many of these individuals work in essential sectors like healthcare, education, and construction.
The shift toward protectionism has been accompanied by political movements like “Make America Great Again” (MAGA), which advocate for reducing immigration and prioritizing domestic jobs. This reflects a shift away from liberal global trade policies, as scholars point out that protectionism can often lead to a backlash and unintended consequences, including rising illegal immigration.
Looking at historical trends, experts note that the current phase of deglobalization isn’t entirely new. Similar patterns occurred during major global shake-ups, such as World Wars and economic depressions. As globalization slows, many governments may turn inward, reshaping labor markets and professional expectations.
In response, India has initiated policies under the “Atmanirbhar Bharat” (self-reliant India) campaign, which aims to strengthen domestic capacities to better engage with global markets. While creating a more self-sufficient economy, this approach also encourages skilled Indians to return home and contribute to local development.
As these geopolitical dynamics play out, it is essential to consider how changing immigration policies affect not just individual migrants but also broader economic systems. The future landscape of migration and labor markets will likely require careful navigation to balance national interests and global interconnectedness.
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