New York: U.S. Secretary of State Marco Rubio and Indian External Affairs Minister S. Jaishankar held a key meeting on the sidelines of the 80th United Nations General Assembly in New York, reaffirming the importance of the U.S.-India partnership despite recent tensions sparked by Washington’s new visa policy.
The talks came just days after President Donald Trump’s administration imposed a $100,000 fee on new H-1B visas, a move that has sent shockwaves through India’s information technology sector. The steep fee increase, which disproportionately impacts Indian tech firms dependent on U.S. markets, triggered a decline in shares of major Indian IT companies and raised concerns over operational costs and competitiveness.
During the meeting, Rubio described India as a relationship of “critical importance” and stressed Washington’s commitment to deepening ties. Both ministers agreed to strengthen cooperation in key areas including trade, defense, pharmaceuticals, energy, and critical minerals. They also highlighted the importance of advancing a free and open Indo-Pacific region, reiterating their commitment to the Quad partnership with Japan and Australia.
The visa fee hike has become a major point of contention, adding to existing trade frictions such as U.S. tariffs on Indian oil imports linked to New Delhi’s purchase of Russian crude. Despite these strains, the discussions in New York signaled that both sides are eager to prevent tensions from overshadowing the broader strategic partnership.
Indian officials have so far avoided signaling retaliatory measures, but analysts warn that the new visa fee could push Indian IT firms to alter their hiring strategies, shift operations to other regions, or seek increased local hiring within the United States. Investors remain cautious as they await further clarity on how the policy will be implemented and whether it may be subject to review.
The reaffirmation of ties underscores the delicate balancing act both nations face: navigating domestic pressures while preserving cooperation on strategic priorities. For Washington, India remains central to its Indo-Pacific strategy and efforts to counter China’s growing influence. For New Delhi, maintaining stable ties with the U.S. is vital for economic growth, defense modernization, and access to critical technologies.
Despite current frictions, both governments signaled their intent to move forward with dialogue and collaboration, emphasizing that the partnership’s long-term strategic value outweighs short-term disputes.