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Analysis
India’s Policy Challenges in 2025 : H1B Shock, Geopolitical Headwinds, and an Economic Crossroads
India faces a major shock from the Trump administration’s $100,000 one-time H1B visa fee, up from $2,000–5,000, hitting the IT sector where Indians hold 72% of 320,000 jobs, affecting firms like Amazon and Infosys with higher costs and fewer workers. This threatens $37.5 billion of the $135.4 billion FY25 remittances from the US, vital for Maharashtra and Kerala. The US revocation of the Chabahar Port sanctions waiver on September 29, 2025, risks India’s ₹800 crore trade corridor to Central Asia. Amid diplomatic tensions and US troop moves, a crisis meeting on September 23, 2025, aims to spur reforms and agility.
