As you know business manoeuvre is made by states
and firms after studying the expected effects and whether this fits into the
overall business strategy. Trump recently showcased his art & craft of deal
making when he decided to hit India where it hurts more. Jacking up fee for H1B
Visa is one such move. Details follow:
The obvious target is the Indian IT professionals
who man most techno firms in USA. Simply stated the Executive Order signed on Friday
26 September imposes a visa
fee of USD 100,000 per person who enters USA after this date under the H1B
visa protocol. Those who already live within USA under this system have to pay
annually similar amount.
Among the many US companies, Amazon, Microsoft, Meta,
Apple and Google have the largest Indian employees under this protocol. In 2025
alone approximately 5,000 such visas were issued. Nearly 70% of the H1B visas
are issued to Indian nationals. The scheme works this way: Indian techno firms
such as Infosys, Tata Consulting, Wipro and Tech Mahindra recruit professionals within India, train
them and later place them with US Firms.
Trump wants to finish off H1B visa system not
because immigrants are crowding the US workplace or for that matter American
techies are un-employed in the home turf at the rate of 5 to 7.5%. For him it is the RIC format of
Russia, India and China challenging US dominance is
the core concern. In his grand scheme of things he envisages the following:
a) Demolish the Indian dream of working in America replacing
US talent pool because Indians are satisfied with half of the earnings average
American techy gets.
b) Out of foreign remittance received by India, nearly 30% originates from America.
c) Trump cannot take China head on, besides Chinese
trail at around 11% of the expatriate employed under H1B protocol, in
comparison to the Lion share held by India.
d) Russia
is not in the game at all as none from that country work in USA under
this visa regime.
e) Trump has to settle his score with India who despite his repeated
demands, or call it pleas, is not ready and willing to stop buying Russian cheap
oil.
Right now the score is 1-nil. My strategic analysis is Trump
H1B tactical business manoeuvre is just the beginning whose blow, however, is
badly felt. How India would respond, we have to wait and see!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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