'Every parent should rethink their decisions to send their children to the US.'
A weekend of panic and disbelief swept through thousands of Indian technology professionals on H1B visas after the United States abruptly announced a steep new visa fee through a Presidential proclamation late on Friday, September 19, 2025.
For Arun Kumar (name changed), a techie from south Tamil Nadu, 30 hours that weekend were a whirlwind of stress and frantic search for a flight ticket to the US.
Kumar works in Michigan for a global giant for almost 15 years on an H1B visa. He had returned to Tamil Nadu for a two-week visit and was scheduled to fly back on October 3.
Then came what he calls the "Donald Trump shocker".
"I had just about 30 hours left in hand. A journey from my hometown to Chennai itself takes at least eight hours.
"Immediately, I checked for tickets for a direct flight, but prices had shot up to nearly $2,000 against my original booking of $600. And with the panic, tickets quickly became unavailable," he recalls.
Even working for an American multinational offered little comfort. It took eight hours for Kumar's company to provide preliminary guidance, as it too struggled to decode the new rules.
He explored every alternative -- flying to Mexico or Canada and entering the US by land -- but nothing worked. By the next day, he had resigned himself.
"They could have given some clarity and time for us to respond. Instead, it created sheer panic," he says.
His last refuge was disconnecting from the news and turning to prayer.
"But the concern isn't over. More than anything, it's mental pressure and panic that this entire episode has created," he adds.
In New Jersey, Mahesh Kumar (name changed) cancelled a family cruise planned for September 21 with his visiting parents.
"I decided not to go. They are saying those already on H1B visas or awaiting renewals will not be impacted, but I will stay put," says the senior executive at an Indian IT services firm.
Late on Saturday, September 20, the White House clarified that the fee applies only to new H1B filings. Existing visa holders or those renewing will not be affected. But for many, relief remains distant.
Companies such as Microsoft, Amazon and several Indian IT firms instructed employees on H1B visas to return to the US by September 22 -- or stay if already there -- even after the White House's clarification.
Students caught in the crossfire
For students, the timing couldn't be worse.
Rajat Deshpande (name changed) came to the US on a Rs 50 lakh education loan.
Only last year did he secure a job, but the new rules have thrown his plans into uncertainty.
"This is double trouble for all the new graduates, especially since the employment market for techies in the US is already weak.
"There are also concerns that employers will not prefer new Indian graduates given how volatile visa rules have become," he tells Business Standard.
"Also, since new graduates end up earning an average of about $70,000, they (employers) will clearly not be able to afford the new visa once they apply for it.
"There are no plans to come back to India for the job yet due to the education loan.
"However, any personal visits or visits to families, et cetera, are now suspended since entry back in the US will be under question," he adds.
For many Indian students, the US dream is fraying.
The mother of a student says: "No point going to the US. I think every parent should rethink their decisions to send their children to the US."
Social media, meanwhile, is buzzing with a different narrative: that India might finally reclaim its talent.
'Fewer international students, offshored jobs, rising costs for Big Tech, and a slower innovation edge. Canada and Europe are smiling,' according to a founder's LinkedIn post.
Dewang Nerralla, serial entrepreneur and CEO of HiWiPay, on LinkedIn writes: 'For India, this is both a challenge and an opportunity. A challenge, because many of our brightest minds still aspire to work abroad. But also an opportunity -- to build globally competitive ecosystems right here at home.'
Neerralla adds: 'This shift could spur much-needed investment in our private universities, bridging the gap between academic learning and industry-grade skills.
'It could also accelerate the growth of offshore development centres and increase global work allocation to Indian firms -- even with hurdles like the proposed 25 per cent HIRE Act tax.'
Industry leaders warn that companies will now have to confront domestic skill gaps.
"There are two things that will happen: One is that the US will have to seriously look at its own skill gaps. The universities in the US are full of immigrant students. And two, agree to pay such a high fee for talent which is in India," says a senior executive from an MNC tech firm.
Trump faces legal hurdles
Immigration lawyers say the executive order is ripe for legal challenge.
Cyrus Mehta, founder and managing partner of Cyrus D Mehta and Partners PLLC, suggests on LinkedIn that litigation, coupled with opposition from corporate America and universities, has already forced the administration to temper its stance.
According to Sukanya Raman, country head India and GCC practice team, Davies and Associates LLC, "the tech giants are likely to challenge this."
"The legal argument would be that the president does not have authority to impose massive new visa fees without Congress."
Rajiv Khanna, managing attorney at Immigration.com, expects a legal battle soon.
"You cannot destroy a statute just by your proclamation and he has destroyed the H-1B statute by levying a fine that is so high," explains Khanna.
With inputs from Avik Das in Bengaluru
Feature Presentation: Ashish Narsale/Rediff
