The Indian government has stated that a new $100,000 (£74,000) fee for applicants seeking US skilled worker visas will have humanitarian consequences.

President Trump recently announced this steep fee for H-1B visa applications, which is over 60 times the previous amount and is set to take effect on September 21.

Indian workers represent more than 70% of those who receive these skilled visas. As a result, some US tech firms have advised their employees with H-1B visas to stay in the US or rush back if they are currently outside the country. However, the White House clarified that the fee will not affect existing visa holders or those renewing their applications.

In a statement released by the Indian Ministry of External Affairs, the government warned that the fee would disrupt family connections, emphasizing the importance of the exchange of skilled workers for both nations. India hopes to engage with US authorities to mitigate the disruptions stemming from this policy change.

The ongoing trade negotiations between the US and India have been tense, especially after recent tariffs imposed by the US on Indian goods. To aid discussions, India's Commerce Minister Piyush Goyal is scheduled to visit the US for trade talks.

According to India's leading trade body, Nasscom, the rushed implementation of this fee has created substantial uncertainty for many businesses, professionals, and students globally.

The US administration has argued that the H-1B visa program has been manipulated by some employers to lower wages and outsource jobs, justifying the new fee. Nonetheless, provisions for case-by-case exemptions for the national interest will apply.

In a climate where almost 400,000 H-1B visas were approved in 2024, of which 260,000 were renewals, the change can greatly affect key players like Amazon and Tata Consultancy Services, which received significant visa approvals within the past year.