New York: The recent hike in H-1B visa fees by the U.S. government is expected to have a more significant impact on American startups and innovation than on India‘s IT services sector, according to Dr. Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF).
In an exclusive, Aghi said the move may actually benefit India in some ways. “The increase in H-1B visa fees is intended to curb misuse and attract high-quality talent to the U.S. This could mean higher salaries for Indian professionals who do make it here. Meanwhile, lower-end work may be increasingly offshored to India. So, despite the noise around H-1B, the effect on India’s IT exports will be minimal,” he explained.
He added that while U.S. startups and innovation ecosystems might feel the pinch, the overall U.S. economy is unlikely to suffer significantly.
Commenting on former U.S. President Donald Trump’s speech at the 80th UN General Assembly, Aghi said India has consistently maintained a policy of non-intervention in its conflict with Pakistan. “India has been very clear over the past 70 years that there will be no third-party involvement in its disputes with Pakistan. The speech was good overall, but the reference to India-Pakistan was not accurate from India’s standpoint,” he said.
Addressing Trump‘s claim that India and China are key contributors to the Russia-Ukraine conflict through their oil purchases from Russia, Aghi dismissed the accusation as misleading. “Europe continues to buy significantly more LNG from Russia. Yes, India and China do purchase Russian oil, but so does the U.S. Suggesting they are fueling the war is a flawed interpretation,” he said.
On trade tensions, including the recent imposition of 50% tariffs by the U.S. on some Indian goods, Aghi expressed optimism about the broader relationship between the two countries.
“I believe the U.S.-India relationship goes beyond trade. It’s a strategic, people-driven partnership, particularly strong in technology and innovation. U.S. companies are investing heavily in global capability centers in India. These trade issues will eventually be resolved, and the relationship will continue on a positive trajectory,” he concluded.
