Sunday, September 21, 2025 News Archive

China’s DeepSeek has announced its latest AI model R1 was trained at a cost of just $294,000, using 512 Nvidia H800 chips. This is a fraction of the cost of U.S. large language models, which often run into millions. The development highlights a new phase in the AI race—efficiency over brute force scale. For India, this trend could lower entry barriers for research institutions and startups aspiring to build indigenous AI systems, democratizing access to advanced model development.

India’s Trade Minister Piyush Goyal will visit Washington on September 22 to resume stalled trade discussions, addressing U.S. tariffs on Indian imports and the recent H-1B visa fee hike. Indian exporters, especially in agriculture, dairy, and textiles, warned of drop in shipments due to rising costs and uncertainties. Trade negotiators are expected to push for tariff rollback and protect export sectors. Industry insiders said clarity could stabilize Indian markets that have been jittery over policy noise and trade restrictions.

India’s Ministry of External Affairs has expressed deep concern over the US decision to raise the annual H-1B visa fee to $100,000, saying the steep increase could cause humanitarian disruptions for families. The MEA clarified the increase applies only for new visa applicants in the next lottery cycle and not renewals. Nevertheless, industry leaders warn this could upend staffing strategies for Indian IT firms with significant abroad deployments. Affected are mobile tech workers, overseas assignments, and people-to-people ties between India and US.

The US H1B visa curbs could act as a catalyst for India’s long-term self-reliance agenda. Analysts suggest that reduced access to foreign job markets will push India to expand domestic R&D and strengthen innovation ecosystems. Industry observers expect more government support for skilling programs, AI research, and semiconductor manufacturing, aimed at absorbing displaced or retained talent. While short-term disruptions to Indian IT exports are likely, over time the restrictions may accelerate India’s transition into a global innovation hub.

US H1B visa restrictions may trigger second-order effects for India’s startup economy. Limited access to US work visas could discourage top Indian talent from relocating, pushing skilled professionals to pursue opportunities domestically. This may strengthen India’s startup ecosystem by retaining critical tech talent at home. Venture investors note that AI, SaaS, and deep-tech ventures stand to benefit from a larger local talent pool. However, entrepreneurs warn that restricted global mobility could reduce exposure to US capital and networks.

India’s Ministry of External Affairs (MEA) said it is studying the implications of recent US curbs on H1B visas. Officials emphasized that skilled talent mobility underpins India-US innovation and business ties. The government flagged humanitarian concerns, as families of H1B workers may face disruptions. Indian IT and tech services firms are assessing potential fallout, which could affect project staffing and cross-border operations. Analysts believe this could accelerate India’s push toward building domestic talent pipelines and diversifying outsourcing destinations.