**Executive Summary**
This document contains the Indian Government's response, answered on 05/12/2025, to questions regarding the impact of changes in tariff structures and H-1B visa policies by the United States. The U.S. imposed reciprocal tariffs effective 31 July 2025, with additional duties applied on 27 August 2025. On 19 September 2025, the U.S. issued guidelines imposing a fee on new H-1B petitions under certain conditions.
**Key Points / Main Content**
* **U.S. Tariff Changes:**
* Effective 31 July 2025, the U.S. imposed reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) on certain goods exported by most countries, including India.
* Effective 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.
* Sector-specific tariffs under Section 232 of the Trade Expansion Act were imposed on steel, aluminum, copper, upholstered furniture, kitchen cabinets, softwood, and automobiles.
* An estimated USD 47.2 billion of India's merchandise exports to the U.S. (out of USD 86.4 billion) are subject to these additional tariffs (based on 2024 trade data).
* **H-1B Visa Policy Changes:**
* Effective 19 September 2025, the U.S. issued guidelines imposing a fee of USD 100,000 on new H-1B petitions if the petitioner does not have a valid H-1B visa and is applying from outside the United States.
* The United States Immigration and Citizenship Services (USCIS) issued H1B FAQ on 21 September 2025 clarifying the non-applicability of the fee to certain categories of applicants already residing in the U.S.
* The U.S. Department of Homeland Security is considering a weighted selection process for H-1B visas, favoring higher-skilled and higher-paid aliens.
* **Government Actions:**
* The Indian Government is in close consultation with exporters and industry to assess the implications of the U.S. measures.
* Engagement with the United States is ongoing, including negotiations aimed at concluding a mutually beneficial Bilateral Trade Agreement (BTA).
* The Indian Government has taken up the issue of restrictive H-1B visa norms and increased rejection rates with the concerned foreign governments.
**Impact Analysis**
**Indian Exporters**
*Impact*
Indian exporters, particularly in the IT, textiles, pharmaceuticals, and engineering goods sectors, are negatively impacted by the new U.S. tariffs. They face increased costs and potential loss of market share. They may have to pay additional fees and face other barriers to exporting goods to the US.
*Action Required*
Monitor changes to tariffs and policies, assess their impacts, and provide feedback to the Indian government through consultations.
**Indian Skilled Professionals**
*Impact*
Indian skilled professionals seeking H-1B visas may face increased costs due to the new USD 100,000 fee and potential disadvantage due to the proposed weighted selection process.
*Action Required*
Stay informed about the latest H-1B visa regulations and guidelines issued by the U.S. government.
**Indian Government**
*Impact*
The Indian government is impacted by the changes in that it needs to respond to changes in US trade and immigration policy in order to protect the interests of its citizens.
*Action Required*
Continue engaging with the U.S. government to negotiate fairer trade and visa arrangements, and protect the interests of Indian exporters and skilled professionals.
Key Entities Referenced
H-1B visa: A non-immigrant visa that allows U.S. employers to employ foreign workers in specialty occupations that require theoretical or technical expertise.
United States: Country whose tariff and visa policies are impacting Indian exports and skilled professionals.
Ministry of External Affairs: The Indian government ministry responsible for India's foreign relations.
International Emergency Economic Powers Act (IEEPA): A U.S. federal law authorizing the President to regulate international commerce after declaring a national emergency.
Trade Expansion Act Section 232: A section of U.S. law allowing the President to impose tariffs on imports threatening national security.
GOVERNMENT OF INDIA
MINISTRY OF EXTERNAL AFFAIRS
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;
1(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
2steel 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
3non-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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