Tharoor urges optimism on H-1B and tariff issues, cites Trump-Modi thaw as diplomatic opportunity

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Congress MP and former UN diplomat Shashi Tharoor has urged Indians not to adopt a “victim mindset” over recent US policy shifts on H-1B visas and trade tariffs, emphasizing the importance of strategic diplomacy and mutual respect. Speaking at a policy forum in New Delhi on September 22, 2025, Tharoor referenced the evolving rapport between Prime Minister Narendra Modi and US President Donald Trump as a sign of potential resolution and cooperation.

Tharoor’s remarks come amid growing concern over the Biden-era visa fee hike being retained under Trump’s second term, alongside a 50% tariff increase on select Indian exports. While acknowledging the economic impact, Tharoor cautioned against “emotional overreaction” and instead advocated for “calibrated engagement” with Washington.

“India must not feel like a victim. We are a rising power with global leverage. The Trump-Modi thaw is real, and it must be used to our advantage,” Tharoor said, referring to recent bilateral meetings and diplomatic overtures that signal a reset in India-US ties.

India-US Policy Flashpoints – September 2025

IssueUS PositionIndia’s ResponseTharoor’s Viewpoint
H-1B Visa Fee Hike$100K annual fee retainedSeeking exemptions for tech professionals“Engage, don’t outrage”
Tariff on Indian Goods50% hike on textiles, pharma, auto partsNegotiating rollback via trade talks“Use strategic diplomacy”
Energy Trade with RussiaCriticized by USIndia defends strategic autonomy“Balance national interest with global ties”
Defense ProcurementPush for US-origin platformsIndia diversifying sources“Avoid dependency, maintain dialogue”

Tharoor highlighted that India’s global stature has evolved, and it must act with confidence rather than defensiveness. “We are not a junior partner. We are a strategic ally. The tone of our engagement must reflect that,” he said.

He also pointed to the recent meeting between External Affairs Minister S. Jaishankar and Secretary of State Marco Rubio in New York, calling it “a timely intervention” that could pave the way for easing visa norms and tariff barriers. “Rubio’s openness and Jaishankar’s clarity are a good mix. Let’s build on that,” Tharoor added.

The H-1B visa fee hike has sparked concern among Indian IT firms and professionals, many of whom fear reduced mobility and increased costs. Tharoor acknowledged these anxieties but urged the industry to focus on long-term solutions, including domestic skill development and global diversification.

Impact of H-1B Fee Hike on Indian Tech Sector

CategoryPre-Hike Scenario (2024)Post-Hike Scenario (2025)Projected Impact (2026)
Visa Application Cost$10,000 per applicant$100,000 per applicant40% drop in applications
Indian IT Workforce in US4.2 lakh3.1 lakhBrain drain risk
Startup Expansion18% annual growth9% annual growthShift to EU, Singapore
Remittances from US$12.5 billion$9.8 billionFiscal pressure

Tharoor also addressed the tariff hike, which has affected key export sectors such as textiles, pharmaceuticals, and auto components. He called for a “multi-layered response” involving trade negotiations, WTO engagement, and domestic manufacturing incentives.

“Let’s not forget, tariffs are tools of leverage. We must counter them with our own strengths—innovation, scale, and diplomacy,” he said.

On the broader India-US relationship, Tharoor was optimistic. He cited the recent Trump-Modi handshake at the G20 Summit in Tokyo and the revival of the Quad framework as signs of strategic convergence. “Despite political theatrics, the fundamentals of India-US ties are strong. We must nurture them,” he said.

India-US Strategic Engagement – Key Milestones

YearEvent DescriptionOutcome/Remarks
2020Trump-Modi ‘Namaste India’ eventSymbolic show of friendship
2023Quad Summit in SydneyMaritime cooperation reaffirmed
2024US tariff hike on Indian goodsTrade tensions rise
Sep 2025Jaishankar-Rubio bilateral meetingTalks on visa, trade, Indo-Pacific
Oct 2025Expected Trump-Modi bilateral in WashingtonPossible reset in economic ties

Tharoor’s remarks were widely shared on social media, with many praising his balanced tone and strategic insight. Policy analysts noted that his intervention could help shape public discourse and encourage constructive engagement.

“Tharoor brings nuance to a debate often dominated by outrage. His call for optimism and diplomacy is timely,” said Dr. Renu Mehta, a senior fellow at the Centre for Strategic Policy Studies.

The Ministry of External Affairs has not officially responded to Tharoor’s comments, but sources indicate that India is preparing a comprehensive diplomatic package to address the H-1B and tariff issues ahead of the October bilateral summit.

Tharoor concluded his address by urging citizens, media, and policymakers to “rise above reactive nationalism” and embrace strategic patience. “India’s rise is inevitable. Let’s not let temporary setbacks cloud our long-term vision,” he said.

Disclaimer: This article is based on publicly available speeches, policy briefings, and expert commentary. It does not reflect any political endorsement or opinion. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.

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