US Secretary of State Marco Rubio met with India’s External Affairs Minister S. Jaishankar in New York on Monday, aiming to steady bilateral ties just days after President Donald Trump announced a USD 100,000 fee for new H-1B visas — a decision that rattled India’s IT sector.
The meeting took place on the sidelines of the United Nations General Assembly and marked their first face-to-face interaction since US tariffs on Indian goods earlier this summer reignited trade tensions. Both leaders exchanged cordial greetings, signaling a shared commitment to maintain continuity in the relationship despite economic irritants.
“India is a relationship of critical importance to the United States,” Rubio said, according to a State Department readout. He praised New Delhi’s collaboration in areas including trade, defense, energy, pharmaceuticals, and critical minerals, and reaffirmed commitment to a free and open Indo-Pacific region, including through the Quad.
Jaishankar echoed the importance of sustained dialogue, posting on X: “Our conversation covered a range of bilateral and international issues of current concern. Agreed on the importance of sustained engagement to progress on priority areas. We will remain in touch.”
Visa Fee Sparks Concerns
The new H-1B visa fee has created uncertainty for India’s IT industry. India accounted for 71% of H-1B approvals last year, compared with just under 12% for China. Analysts warn the fee could significantly increase costs for Indian IT firms that rely on the program for skilled labor.
Ongoing Trade Disputes
The visa issue comes alongside lingering trade tensions. In July, the US imposed a 25% tariff on Indian goods, followed by an additional 25% citing India’s continued purchases of Russian oil. These measures delayed negotiations on a Bilateral Trade Agreement, although talks resumed in September with both sides pledging to intensify efforts.
Despite these challenges, Washington and New Delhi have maintained diplomatic engagement. Rubio and Jaishankar last met in July during the Quad foreign ministers’ meeting, highlighting shared concerns about China. Monday’s discussions underscored that cooperation between the two countries remains intact even amid economic and policy frictions.
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