Musk says H-1B visas being 'gamed' by outsourcing firms

December 1, 2025

Tesla CEO Elon Musk discussed H-1B visa concerns during a podcast with Indian entrepreneur Nikhil Kamath, arguing that while some outsourcing firms exploit the program through tactics like multiple lottery entries, the visa system should be reformed rather than eliminated. Recent data shows H-1B approvals for major Indian outsourcing companies have plummeted by 70% since 2015, partly due to President Trump's new $100,000 application fee and stricter policies. Musk also revealed he unsuccessfully attempted to discourage Trump from implementing tariffs, which currently stand at 50% on Indian goods.

Who is affected

Indian citizens working in technology and medicine sectors in the US (who hold roughly 70% of H-1B visas)
Indian outsourcing and staffing companies (the top seven had only 4,573 H-1B petitions approved in the current financial year)
US employers seeking to hire skilled foreign workers
H-1B visa applicants facing the new $100,000 fee
Indian goods exporters facing 50% US tariffs

What action is being taken

The US is charging a $100,000 fee for H-1B visa programme applicants
The US is imposing 50% tariffs on Indian goods, including a 25% penalty for buying Russian oil
Negotiations for a trade deal between the US and India are under way

Why it matters

The H-1B visa program is crucial for US companies to access skilled foreign workers, particularly in technology and medicine sectors where Indian workers comprise the majority of visa holders. The dramatic 70% decline in approvals for Indian outsourcing companies since 2015, combined with the new $100,000 fee and stricter policies, could significantly impact both the US economy and India-US relations. The misuse of the visa system through gaming tactics has created a need for reform rather than elimination, as shutting down the program would harm America's ability to attract global talent and potentially damage competitiveness in critical industries.

What's next

Negotiations for a trade deal between the US and India are under way, with the goal of concluding an agreement by the end of this year.

Read full article from source: BBC