Washington, Nov 30 (NationPress) Tesla CEO Elon Musk has openly supported the H-1B visa scheme, emphasizing that the US economy has benefited greatly from Indian immigrants. He shared these insights during a podcast discussion with Zerodha co-founder Nikhil Kamath.

In the episode of the “WTF is?” podcast, released on Sunday, Musk maintained that America requires high-skill workers from India now more than ever, while also pointing out the misuse of the visa system by certain outsourcing companies.

“America has been an immense beneficiary of talent from India,” Musk remarked, noting that his companies consistently face challenges in filling specialized positions due to a shortage of skilled professionals.

While defending the H-1B program as an essential channel for global talent, he also recognized its flaws.

He criticized “some outsourcing companies that have manipulated the system,” urging necessary reforms to “prevent the exploitation of the program” instead of abolishing it entirely.

“I’m definitely not in favor of shutting down the H-1B program,” he stated, countering calls from segments of the political right.

Musk connected broader immigration discussions to policy shortcomings, arguing that the previous administration's strategy resulted in “a complete free-for-all, with virtually no border regulations,” which he claimed fostered illegal immigration and led to “a negative selection effect.” “Without border controls, you’re not a nation,” he emphasized.

Musk’s statements arise during a crucial period for the H-1B program under President Donald Trump's second term, which has adopted a more stringent regulatory stance while still recognizing the necessity of skilled foreign labor.

The H-1B visa, established by the Immigration Act of 1990, permits US employers to recruit foreign professionals in specialized fields.

Congress limits the program to 65,000 visas each year, with Indian nationals dominating the system: they accounted for 71% of all H-1B approvals in 2024, followed by Chinese nationals at 12%.

The US approved nearly 400,000 H-1B applications that year, including renewals beyond the cap.

In Trump’s second term, enforcement has tightened. In September, he introduced a new $100,000 fee on fresh H-1B petitions filed after September 21, 2025. This fee targets what the administration labels as “loopholes” allowing employers to “undercut American workers.” It does not affect renewals, current visa holders, or 2025 lottery winners.

A Department of Homeland Security proposal anticipated in December will re-evaluate cap exemptions, enhance scrutiny of violators, and tighten third-party worksite regulations to “bolster program integrity.”

Despite the harsh rhetoric, Trump has continuously acknowledged the program’s economic significance. In a November 11 Fox News interview, he defended the visas against critics within his base: “You need to attract talent... We won’t succeed if we don’t allow individuals who invest billions to bring many of their people from their home countries.”

Recognizing workforce shortages, he added: “You can’t simply take people off an unemployment line and say, ‘I’m going to place you in a factory.’”