US tightens H1B visas, India faces risk of "remittance bleeding"

In a speech on September 22, Indian Prime Minister Narendra Modi once again called on the people of this country to reduce consumption of foreign goods and increase the use of domestic goods. In addition, Mr. Modi also called on shop owners to focus on "Made in India" products.

The Indian Prime Minister's calls come as relations between India and the US are undergoing many fluctuations, from the US's 50% tariff on Indian goods and most recently the increase in H1B visa fees - the type of visa that many Indian workers are using to live and work in the US. The new fee of up to 100,000 USD for each new visa is expected to have many impacts on the Indian labor market and economy .

In the capital New Delhi, many Indian students received the news of the US H1B visa fee increase with caution and some anxiety. Many of them had planned, or were intending to go to the US to work after graduation. However, the new fee may change their plans.

Ms. Aarti Meena - Student of Delhi School of Economics, India said: "The dream of working in the US is already very expensive, now it will be even more difficult. Many of my cousins are planning to go to the US soon, but this new regulation will definitely be very disadvantageous for them because of higher costs and fewer positions."

India has always been the biggest beneficiary of the H1B visa, a US visa for skilled workers. Last year, more than 140,000 of these visas were issued to Indian workers, accounting for more than 70% of the total number of H1B visas issued. The US fee increase is likely to limit the number of Indian workers coming to the US and thereby affect the huge amount of remittances that this group of workers sends back home.

Mr. Ajay Bagga - Banking and financial market expert commented: "This decision not only affects the US economy and businesses, but also the Indian economy, specifically remittances. Indian workers in the US send home about 30-32 billion USD each year, but the new fee can affect this number."

For many, the prospect of high costs could dash their dreams of working and living in the US in the near future. But there are also views that this is an opportunity for India to reverse the ongoing brain drain, especially in important sectors such as technology or health services.

Mr. Ashok Gupta - Resident of New Delhi, India said: "This is a loss for the US, not India. With this fee, people who do not have enough resources will stay and work in the country, helping to boost our domestic economy."

In recent years, the Indian economy has maintained a relatively high growth rate, forecast to reach 6.5% this year, with the advantage of a billion-people consumer market and a developed technology industry. Therefore, many people in this country still hope that the South Asian country's economy can maintain stability in the face of current fluctuations such as tariffs and H1B visa issues.

Source: https://vtv.vn/my-siet-thi-thuc-h1b-an-do-dung-truoc-nguy-co-chay-mau-kieu-hoi-100250924163336798.htm