India defends skilled worker flow as Trump tightens H-1B rules

The tighter immigration rules come on top of Trump’s 50% tariff on Indian exports, half of which were meant to penalize New Delhi for buying oil from Russia

India said Friday that both the Indian and US economies have benefited significantly from the movement of skilled talent, days after President Donald Trump’s decision to impose severe restrictions on H-1B visas.

“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India,” Randhir Jaiswal, spokesperson for external affairs ministry, told reporters at a briefing in New Delhi. “This is still an evolving situation and we remain engaged at various levels,” he said in response to a question on the H-1B visa changes.

Trump’s move to slap a $100,000 fee on new H-1B applications for skilled workers will disproportionately hurt Indians, who make up two-thirds of the visas. The move threatens the nation’s $280-billion tech services industry, putting thousands of jobs at risk. The tighter immigration rules come on top of Trump’s 50% tariff on Indian exports, half of which were meant to penalize New Delhi for buying oil from Russia.

An Indian delegation led by Commerce Minister Piyush Goyal held “constructive meetings” with US officials this week on a potential trade deal, though Washington’s pressure on New Delhi to halt Russian oil imports and recent tightening of immigration rules continue to weigh on the negotiations.