The visa framework under discussion is H-1B visa, a non-immigrant work permit allowing US companies to hire foreign professionals with specialised skills, most commonly in engineering, software development and research. The scheme has long facilitated the entry of large numbers of Indian professionals into US tech and services firms, contributing to a dynamic workforce that has helped fuel innovation, entrepreneurship and corporate expansion across multiple sectors. Economic studies have associated H-1B holders with increased innovation, a higher rate of startup formation, and improved overall productivity in firms that employ them, although some research warns of potential adverse effects on wages for competing American workers.
Musk acknowledged that some outsourcing companies had manipulated the system—hiring on H-1B visas while paying lower wages or outsourcing work en masse—but stressed that these abuses should be addressed through oversight and regulation, not by eliminating the programme. He said that his own companies often struggled to find enough qualified workers domestically and that global talent helped fill vaulting gaps in competence and capacity.
The stance becomes especially relevant amid shifting immigration policy under Donald Trump’s current administration, which last year introduced a steep one-time fee of USD 100,000 for new H-1B petitions, a move seen as discouraging new entries. For many Indian professionals—who historically account for the majority of H-1B approvals—this change created fresh uncertainty over job prospects, long-term residency and the future of their contributions to American firms.
Officials in New Delhi have voiced concern over the move, noting that the mobility of skilled professionals constitutes a key pillar of economic and technological partnership between India and the United States. The Indian government has described the flow of talent as mutually beneficial, underscoring that both nations gain from the exchange of expertise, innovation and human capital.
Supporters of skilled-immigration programmes argue that the larger impact extends beyond filling jobs: immigrants drive new business formation, energise research and development, enrich technological ecosystems and deliver fiscal gains through higher company performance and tax contributions. Opponents counter that by increasing labour supply, the programmes can depress wages and job opportunities for existing workers.
Musk’s public endorsement of skilled immigration comes at a time when the tech industry is increasingly concerned about talent shortages in areas such as artificial intelligence, semiconductors and advanced engineering. By urging reform rather than abolition of H-1B, he injects a voice of economic pragmatism into a debate often dominated by political rhetoric.