Hyderabad: State IT and Industries Minister D Sridhar Babu has expressed strong disapproval of the Union government’s inaction regarding the US decision to significantly increase H-1B visa fees. He announced that the state plans to send a letter urging the Union government to respond promptly. The Minister highlighted that this fee hike could severely affect India’s economy, with a notable impact on Telangana.
During a press conference, Sridhar Babu mentioned that a large portion, about 72-73%, of H-1B visa holders are Indian. The fee increase, reportedly reaching $100,000 annually, could disproportionately affect these professionals. In the fiscal year 2024-25, India received $135.46 billion in remittances, with 27.7% coming from the US. This fee hike could reduce these inflows, impacting India’s foreign exchange reserves. Despite this, the Centre has neither acted nor sought exemptions for current H-1B visa holders, he added. He also noted past tariffs on Indian goods by the US and criticized Prime Minister Narendra Modi for remaining silent on these economic challenges, suggesting attempts to justify harmful measures.
The Minister called for immediate diplomatic talks to obtain temporary exemptions for current H-1B visa holders and to safeguard the interests of Indian IT professionals and families reliant on overseas remittances.
Regarding state concerns, he noted that Telangana contributes 8.1% of India’s total remittances, ranking fourth nationally. This policy change could severely impact the state. The state government plans to communicate with the Centre to demand urgent intervention for its citizens.
Sridhar Babu further criticized the Centre for neglecting federal principles, stating, “The Constitution defines India as a union of states. Unfortunately, the current Union government only treats BJP-ruled states as governance partners, consistently ignoring states like Telangana.”
