Some relief for Indian IT firms, techies as Trump backs H-1B visa

Amid a raging debate that divided his traditional base and tech barons like Elon Musk, United States President-elect Donald Trump waded into the controversy on Saturday (December 28), saying that he backs H1-B visa program that helps highly skilled workers enter the country.

His remarks have come as a huge respite for India’s IT firms and professionals who were concerned on account of Trump’s restrictive immigration policies that characterised his first term in office.

Trump’s anti-immigration stance was a cornerstone of his 2016 and 2020 campaigns, and his promise to deport undocumented immigrants and restrict legal immigration fuelled his electoral success.

Also read: Indian IT firms build guardrails as Trump's tough H-1B policies loom again

Traditional base vs tech magnates

During his previous administration, the H1-B visa programme faced unprecedented scrutiny, with denial rates climbing dramatically from 6 per cent in 2016 to a peak of 24 per cent in 2018. This trend highlighted a significant tightening of immigration processes, including higher application fees and stricter evaluation criteria.

“I’ve always liked the (H1-B) visas, I have always been in favour of the visas, that's why we have them” at Trump-owned facilities, the president-elect told the New York Post in his first public comments on the matter since it flared up this week.

The debate has become a flashpoint among Trump’s supporters, with tech magnates, including Musk, advocating for the program, while others push for tighter immigration controls. Tesla CEO Musk described luring top engineering talent from abroad as “essential for America to keep winning,” in a post on his X platform. He even vowed to “go to war” over the issue, further escalating tensions within the GOP.

Vivek Ramaswamy, who serves as co-chair of a cost-cutting panel under Trump, also argued that the US faces a shortage of highly skilled graduates, making the H1-B program indispensable. Ramaswamy, himself the son of Indian immigrants, intensified the debate by slamming what he called an “American culture” that rewards mediocrity, warning that the nation risks falling behind rivals like China. His remarks, posted on social media, provoked outrage from several Trump loyalists, some of whom accused him of undermining American workers.

Conservatives upset over Musk’s stance

The Tesla CEO’s comments backing H1-B workers infuriated several prominent conservatives who were backing Trump long before Musk joined their cause this year, going on to pump more than $250 million into the Republican’s campaign.

“Looking forward to the inevitable divorce between President Trump and Big Tech,” said Laura Loomer, a far-right MAGA figure known for her conspiracy theories. “We have to protect President Trump from the technocrats,” she was quoted as saying by news agency AFP.

Also read: Biden government move to relax H-1B visa rules to benefit Indians

She and others said Trump should be promoting American workers and further limiting immigration. Trump strategist Steve Bannon, who wrote on the Gettr platform that the H1-B program brings in migrants who are essentially “indentured servants” working for less than American citizens would, called the Tesla CEO a “toddler.”

Some of Trump's original backers say they fear he is falling under the sway of big donors from the tech world like Musk and drifting away from his campaign promises.

H1-B visa and Indian professionals

The H1-B visa program allows US companies to employ foreign professionals in specialised roles requiring advanced education and training. However, a longstanding policy limits the number of visas allocated in a single year, with 65,000 visas for foreign workers with at least a bachelor’s degree and 20,000 additional visas for foreign workers who hold a master’s degree or higher from a US institution. This cap disproportionately affects Indian professionals, who represent a substantial share of the global tech talent pool.

Currently, there’s a limit on how many visas can be issued to applicants from any single country, which has created a bottleneck for Indian professionals seeking to work in the US. Each year, only a limited number of H1-B visas are available to applicants from countries like India, leading to intense competition. At present, no more than 7% of the total number of H1-B visas can be allocated to workers from any single country, regardless of demand, which causes significant delays for applicants from high-demand countries like India.

Also read: H-1B visas: Domestic pilot programme could benefit thousands of Indian professionals

Proposal to remove H1-B visa caps

However, the US authorities are currently mulling a proposal to remove H1-B visa caps — a move that would benefit thousands of Indian workers. The development comes even as US President-elect Donald Trump recently appointed Sriram Krishnan as a senior policy advisor. Krishnan has been a vocal advocate for immigration laws based on merit — favouring changes that will prioritise highly skilled workers and expedite the green card application process.

Under the proposed reform, the per-country cap on H1-B visas would be eliminated. Instead, visas would be distributed based on merit rather than nationality. This change would create a level playing field, reducing wait times for Indian professionals and improving their transition to permanent residency.