Former G20 Sherpa Amitabh Kant stated on Saturday that US President Donald Trump‘s proposal to charge an annual fee of $100,000 for the H-1B visa will stifle American innovation while favoring Indian IT and software companies.

Trump has signed a proclamation to drastically reduce the H-1B visa program, which is a huge blow to Indian tech workers in the US and leading software businesses.

“Donald Trump’s $100,000 H-1B fee will stifle American innovation while fostering it in India.” “America pushes the next wave of labs, patents, innovation, and startups to Bangalore and Hyderabad, Pune, and Gurgaon by slamming the door on global talent,” Kant wrote on the social media platform X.

He added that the best physicians, engineers, scientists, and inventors in India have a chance to support India’s development and advancement toward Viksit Bharat.

“India will gain from America’s loss,” he said.

According to investor and entrepreneur Kunal Bahl, a huge number of bright people would return to India as a result of the new H1-B regulations.

He wrote on X, “Moving base will undoubtedly be difficult at first, but it will work out for them given the tremendous opportunities in India.”

The proclamation states that in an effort to reduce the abuse of the visa program and promote the employment of domestic workers, each application will now need to pay a $100,000 annual fee.

Trump stated that the “incentive is to hire American workers” as he signed the proclamation at the White House on Friday.

“We require employees. This essentially guarantees that we will have excellent workers, Trump continued.

Howard Lutnick, the secretary of commerce, also supported the action, claiming that it would deter businesses from employing foreigners.

Additionally, President Trump issued an executive order establishing a gold card program that would allow individuals to receive a visa for $1 million and businesses to receive a visa for $2 million.