India on Friday said that U.S. decision to impose a one-time $100,000 fee on future H-1B visa applications – widely used by Indian IT firms – risks disrupting services exports and remittance inflows, sectors that have so far remained resilient amid global trade tensions.
The near-term impact is expected to be manageable but impact of prolonged restrictions will need close monitoring, particularly as alternative export markets are still developing, according to the finance ministry’s monthly economic report.
The move adds to broader trade uncertainties that have already weighed on India’s goods exports. Tariff-related risks continue to pose challenges, with potential spillovers into the domestic employment, income and consumption, the report said.
The economic report said inflation was expected to stay under control as replenished reservoirs are likely to support the upcoming winter crop.