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H-1B Visa Fee Hike and L-1 Visa Alternatives

(Prelims: Current Events)
(Mains, General Studies Paper 2: Impact of Policies and Politics of Developed and Developing Countries on India's Interests; Overseas Indians)

Context

  • The United States has announced a substantial increase (up to $100,000) in the application fee for new H-1B visas. This move has sparked concern and a search for alternatives among Indian professionals. In this context, the L-1 visa is being considered as an alternative option.
  • These changes come into effect on September 21, 2025. New visa applications will now incur a fee of over ₹8 million (approximately $8 million), compared to the previous fee of only $215 to $5,000.

  • Some of the top companies hiring foreigners are: Amazon, TCS, Microsoft, Meta, Apple, Google, etc.
  • The Recent Issue of H-1B Visa Fee Hike
  • The Donald Trump administration in the United States has increased the current H-1B application fee.
  • This fee has reached $100,000 for the new H-1B visa facility.
  • This has had a financial and professional impact on Indian IT and multinational company (MNC) professionals.

Impact on Indian Professionals

  • Applying for an H-1B has become expensive and challenging.
  • Opportunities for Indian IT workers will be limited.
  • Large MNCs will be forced to look for other options for their employees.
  • India (with approximately 73%) leads the list of H-1B holders, followed by China (~12%), the Philippines (1%), Canada (1%), and South Korea (1%).

About the L-1 Visa Option

  • Introduction: The L-1 visa is a non-immigrant work visa that allows employees of multinational companies to transfer from their overseas offices to U.S. offices.
  • Eligibility: Must have worked at a branch/subsidiary/affiliate of a multinational company for at least 1 year in the past 3 years.
    • L-1A: Executive/Managerial Role
    • L-1B: Specialized Knowledge Role
  • Applicant: Only companies can apply; no individual applicants.

Features

  • No Quota: No Annual Limit
  • Blanket Petition: Larger companies can apply faster.
  • Dual Intent: No barrier to applying for a Green Card.
  • L-2 Visa: Automatic work permit for spouse.

Benefits

  • No lottery or annual limit like the H-1B
  • Employee can be transferred to a US branch of the same company
  • Spouse can work

Limitations

  • Transfer only within the same company
  • No transfer to another employer (portability)
  • Time limit: 5 years for the L-1B and 7 years for the L-1A
  • No extension possible while awaiting green card processing like the H-1B

Comparison of H-1B and L-1 visas

Feature

H-1B Visa

L-1 Visa

Eligibility

Professionals in specialized fields

Company transfer employees

Annual Limit

85,000

No limit

Salary Requirement

Prevailing wage

No minimum salary required

Application Type

Individual + Company

Company sponsored only

Spouse Rights

H-4: Limited

L-2: Automatic work authorization

Is the L-1 really an alternative to the H-1B ?

  • Public opinion: Not for most employees.
  • Large companies already use the L-1.
  • There are no options for students and new employees.

Conclusion:

The H-1B visa is still the main route for professionals from India. The L-1 visa is a lucrative option for specialists and high-level employees. Companies freely use both visa routes.


Trump's 3 Visa Cards

Gold Card

  • Fee: Approximately ₹8.8 crore
  • Benefits: Unlimited residency in the US and helps obtain citizenship

Corporate Gold Card

  • Fee: ₹17.6 crore
  • Benefits: The company can transfer the visa to another employee and does not need to pay ₹1.76 crore again

Platinum Card

  • Fee: ₹41.5 crore
  • Benefits: Tax-free stay in the US for up to 270 days and no travel visa required.
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