Former NITI Aayog CEO and G20 Sherpa Amitabh Kant has warned that U.S. President Donald Trump’s proposed $100,000 annual H-1B visa fee will stifle American innovation while boosting India’s startup scene by redirecting global talent to cities like Bengaluru, Hyderabad, Pune, and Gurugram. In a September 20, 2025, X post, Kant described the policy as “America’s loss, India’s gain,” highlighting how it could push labs, patents, and startups back to India. This article explores Kant’s comments, the context of Trump’s H-1B fee hike, and its potential to reshape global tech talent flows. The Hindu
Amitabh Kant’s Critique: Key Details
Amitabh Kant, a prominent Indian policymaker, reacted sharply to Trump’s executive order imposing a $100,000 annual fee on H-1B visa applications, effective September 21, 2025. Key points from his statement include:
- Choking U.S. Innovation: Kant argued the fee “slams the door on global talent,” potentially hindering U.S. tech giants reliant on H-1B workers, who hold 71% of visas in STEM fields.
- India’s Turbocharge: He predicted a “next wave of labs, patents, innovation, and startups” shifting to Indian hubs like Bengaluru, Hyderabad, Pune, and Gurugram, enabling India’s “finest doctors, engineers, scientists, and innovators” to fuel #ViksitBharat (Developed India).
- Broader Impact: The policy affects companies like Amazon, Microsoft, and Meta, which sponsor most H-1B visas, and could redirect talent amid India’s thriving tech ecosystem.
Kant’s X post emphasized: “Donald Trump’s 100,000 H-1B fee will choke U.S. innovation, and turbocharge India’s.” This comes as India positions itself as a global innovation hub, with initiatives like the $20 billion Semiconductor Scheme 2.
Context of Trump’s H-1B Fee Hike
Trump’s order, signed on September 19, 2025, raises the H-1B fee to $100,000 annually to ensure “highly skilled” hires and prioritize American workers. Key context includes:
- H-1B Program Overview: Designed for specialty occupations, the visa has been a lifeline for Indian IT professionals, with a median salary of $118,000.
- U.S. Commerce Secretary’s Support: Howard Lutnick stated major companies are “on board,” but critics like Kant see it as a barrier to talent.
- India’s Stake: India accounts for 71% of H-1B approvals, mainly in tech, making the fee a direct hit to its diaspora and U.S.-India tech ties.
The policy aligns with Trump’s “America First” agenda, but Kant views it as a self-inflicted wound on U.S. competitiveness.
Why the H-1B Fee Could Drive Startups to India
Kant’s prediction is rooted in India’s readiness to absorb returning talent:
- Talent Redirection: High fees may prompt skilled workers to stay in India, boosting startups in Bengaluru and Hyderabad, already global tech hubs.
- India’s Tech Boom: With Infosys hiring 20,000 fresh graduates in FY26 and Porter’s $100M Series F, India’s ecosystem is primed for innovation.
- Economic Incentives: Policies like Make in India and the sixfold electronics manufacturing growth create fertile ground for labs and patents.
- Global Shift: Amid U.S. restrictions, India’s #1 ranking in cryptocurrency adoption and 115% urban festive e-commerce surge attract global capital.
Kant noted this as an “unprecedented opportunity” for India’s progress toward Viksit Bharat.
Implications for U.S.-India Tech Relations
The H-1B fee hike could reshape bilateral ties:
- U.S. Innovation Loss: Tech giants like Microsoft and TCS may face talent shortages, impacting R&D and costing billions in productivity.
- India’s Gain: Returning talent could accelerate startups, with cities like Pune and Gurugram emerging as new Silicon Valleys.
- Global Talent Flow: The policy may redirect professionals to hubs in Canada or Europe, but India’s cost advantages position it strongly.
- Policy Backlash: Nasscom warns of impacts on Indian tech firms, potentially straining U.S.-India trade relations.
The Bigger Picture: Global Talent Wars
Kant’s comments highlight escalating global competition for tech talent, amid trends like SpaceX’s $17 billion spectrum acquisition and Google’s Veo 3 pricing cut. As India thrives with Urban Company’s 34% GMP and Maruti Suzuki’s all-time high, Trump’s policy could inadvertently fuel its rise. This echoes broader shifts, such as Russia’s digital ruble trials and Alibaba’s $8 billion tokenization, where nations vie for innovation dominance.
For India, it’s a call to build infrastructure for returning talent, as Kant urged: “Time for India to step up.”
What’s Next for H-1B and India’s Tech Ecosystem?
Key developments to watch include:
- Legal challenges to Trump’s order, potentially delaying implementation.
- India enhancing startup incentives to attract global talent, building on the Semiconductor Scheme 2.
- Tech firms like Amazon and Meta lobbying for fee reductions.
- Monitoring talent migration patterns and their impact on U.S.-India innovation flows.
Conclusion
Amitabh Kant’s stark warning that Trump’s $100,000 H-1B fee will “choke U.S. innovation and turbocharge India’s” underscores a pivotal moment in global tech dynamics. By redirecting talent to Bengaluru and beyond, the policy could accelerate India’s startup revolution, turning America’s potential loss into India’s strategic gain. As nations compete for the world’s brightest minds, India stands ready to lead.
