India criticized the U.S. decision to impose a one-time $100,000 fee on new H-1B visas, calling it likely to disrupt services exports.
The finance ministry noted the impact may remain manageable short term, but prolonged restrictions pose risks.
Sectors like IT and software services, which rely heavily on dispatching professionals abroad, may feel stress.
Remittance inflows could also come under pressure as fewer professionals move on such visas.
The report urged monitoring alternative export markets to reduce dependence on U.S. demand.
The policy adds to tariff and trade uncertainties currently buffeting export-oriented sector
s.
Analysts say clarity is needed on how “services exports” will be defined under the new regime.
The move underscores the vulnerability of India’s export model reliant on regulatory regimes ab
road.
Market participants may recalibrate valuations for tech stocks with high U.S. exposure.
The government’s ability to negotiate or mitigate such external policy headwinds will be under the spotlight.