Elon Musk, in Nikhil Kamath’s podcast, raised concerns over the H-1B visa programme, claiming that outsourcing firms have exploited the system. The billionaire entrepreneur stated that some companies have “kind of gamed the system on the H-1B front,” as quoted by Musk during the podcast. His comments come amid growing scrutiny over foreign labour and its impact on American jobs.The remarks follow policy changes in the US, where President Trump signed a proclamation introducing a new annual fee of one hundred thousand dollars for H-1B visa applicants. The move aims to reduce reliance on foreign workers in the technology sector, according to White House officials.Outsourcing firms under scrutiny“I think there’s been some misuse of the H-1B programme,” Musk said in Nikhil Kamath’s WTF podcast Episode 16. He added that outsourcing companies are particularly responsible for manipulating visa allocations to bring in foreign workers.President Trump’s policy requires companies applying for H-1B visas to fulfil the new $100,000 annual payment. White House Press Secretary Karoline Leavitt emphasised that the President is committed to protecting American jobs while encouraging foreign investment in the US. Leavitt stated, “The President does not support American workers being replaced… He wants to see the American manufacturing industry revitalised better than ever before,” as quoted by White House officials.HIRE Act concerns for IndiaFormer Reserve Bank of India (RBI) Governor Raghuram Rajan has highlighted potential risks posed by the proposed US Halting International Relocation of Employment (HIRE) Act. “One of our biggest concerns is not so much the goods tariffs but whether they try and find ways of imposing tariffs on services. This is a threat,” Rajan said in conversation with DeKoder.Rajan explained that the HIRE Act could directly affect India’s information technology and services exports. He added, “The US Congress is debating the HIRE Act, which aims to tax outsourced work. How that’ll be implemented is anybody’s question, but this creeping of tariffs beyond goods to services to Indian visitors into the US through the H-1B route – these are all concerns,” as quoted by DeKoder.Impact on the US tech industryThe discussion on H-1B visas in Nikhil Kamath’s WTF podcast Episode 16 has highlighted the challenges facing the US tech sector. Analysts note that foreign talent plays a crucial role in innovation, but there are growing debates on the balance between international workers and domestic job opportunities.Elon Musk’s statements in the podcast have brought additional attention to the H-1B programme and outsourcing practices, reinforcing scrutiny from policymakers and industry leaders. The programme’s reforms and potential implementation of the HIRE Act continue to generate dialogue globally.
