LOK SABHA
UNSTARRED QUESTION NO- 937
ANSWERED ON- 05/12/2025
IMPACT OF CHANGE IN H-1B VISA POLICIES
937. DR. KALANIDHI VEERASWAMY
MS. MAHUA MOITRA
Will the Minister of EXTERNAL AFFAIRS be pleased to state :-
(a) whether the Government is aware of recent changes in tariff structures and H-1B visa policies by certain countries, particularly the United States, that could adversely affect Indian exports and skilled professionals;
(b) if so, the details thereof along with the estimated number of Indian Citizens affected by the said policy change during the last three years and those likely to be affected in the coming years;
(c) the estimated impact of these tariff changes on India’s key export sectors such as IT, textiles, pharmaceuticals and engineering goods;
(d) whether the Government has taken up the issue of restrictive H-1B visa norms and increased rejection rates with the concerned foreign governments and if so, the details thereof;
(e) the steps being taken by the Government to protect the interests of Indian exporters and skilled professionals abroad and to negotiate fairer trade and visa arrangements in bilateral or multilateral forums?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS
(SHRI KIRTI VARDHAN SINGH)
(a to e) On 31 July 2025, the U.S. imposed reciprocal tariffs, invoking national emergency authorities under the International Emergency Economic Powers Act (IEEPA), on certain goods exported by most countries, including India. Further, on 27 August 2025, an additional 25% ad valorem duty was applied on select Indian exports under IEEPA in response to India’s importation of Russian oil.
In parallel, the U.S. has imposed a range of sector-specific tariffs under Section 232 of the Trade Expansion Act on products such as steel and aluminium, copper, upholstered furniture and kitchen cabinets, softwood, and automobiles.
Several goods and services, including crude oil and petroleum products, pharmaceuticals, bullion, certain electronic items, precious metals, critical minerals, resins and plastics, agricultural products, and IT services, among others, have not been subject to tariffs.
Based on 2024 trade data, an estimated USD 47.2 billion of India’s merchandise exports to the U.S., out of a total of about USD 86.4 billion, fall under the categories subject to these additional tariffs.
Government remains in close consultation with exporters and industry to assess their feedback on the implications of the U.S. measures. Engagement with the United States is ongoing, including through negotiations aimed at concluding a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA).
On 19 September 2025, the U.S. Administration issued guidelines titled "Presidential Proclamation” imposing a fee of US$ 100,000 on new H-1B petitions if the petitioner does not have a valid H-1 B visa and is applying from outside the United States. Subsequently, the United States Immigration and Citizenship Services (USCIS) issued H1B FAQ on 21 September 2025 giving clarity on the non-applicability of the fee to certain categories of applicants already residing in the U.S. Since the proclamation took effect only from 21st September 2025, there is no comparable data as yet to demonstrate its impact on Indian nationals.
Separately, the U.S. Department of Homeland Security is also considering implementing a weighted selection process that would generally favour the allocation of H-1B visas to higher skilled and higher paid aliens. Any assessment of its impact is hypothetical at this stage.
While visa-related decisions are sovereign matters, India believes that skilled talent mobility has long played a significant role in promoting technology advancement, innovation, economic growth, and wealth creation in both India and the United States. Stakeholders in both countries remain engaged in discussions on ensuring continued support for innovation-driven industries. The Government of India remains actively engaged with the U.S. Government on all matters concerning our national interests.
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