India on Saturday said the full implications of the United States’ decision to impose a $100,000 annual fee on H-1B visas are currently being studied, but added that the measure taken by the President Donald Trump-led administration is likely to have 'humanitarian consequences'.

In a statement, the Ministry of External Affairs said: "The Government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program."

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The MEA said: "Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward."

The Ministry emphasised that skilled talent mobility and exchanges have significantly contributed to technological development, innovation, economic growth, competitiveness, and wealth creation in the United States and India.

"Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries," the statement said.

The MEA said the Indian government hopes that these disruptions can be addressed suitably by the US authorities.

US President Donald Trump has signed a petition that will impose an annual $100,000 application fee for H-1B visas.

This move is likely to impact a large number of Indian tech workers, who constitute a major portion of the beneficiaries.

“We need great workers, and this pretty much ensures that that’s what’s going to happen,” Trump said from the Oval Office as quoted by CNN.

In a statement issued sharing details about the proclamation, White House said: "The H-1B nonimmigrant visa program was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour."

The White House said the large-scale replacement of American workers through 'systemic abuse' of the program has undermined both our economic and national security. 

  The statement pointed out that Information technology (IT) firms, in particular, have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields. 

"The share of IT workers in the H-1B program grew from 32 percent in Fiscal Year (FY) 2003 to an average of over 65 percent in the last 5 fiscal years," reads the statement.

The White House said the abuse of the H-1B program is posing a national security threat.