Reactions to the proposal in the U.S. and India have been mixed, the paper noted.

The North American Association of Indian IT Professionals (NAAIIP) is pleased with new stipulations to increase the number of temporary high-skill visas (H-1B visas) and provide foreign high skill workers with some employment flexibility.

India's National Association of Software and Services Companies (Nasscom) is concerned about the likely hike in H-1B visa fees and the potential to apply new rules in a discriminatory manner against companies headquartered in India.

The U.S.-India Business Council (USIBC) and the Confederation of Indian Industry (CII), both argue that targeting Indian firms operating in the U.S. with restrictions or fees is contrary to the spirit of the U.S. - India strategic partnership.

"While this debate continues, one thing that most experts can agree on is that the U.S. is no longer the only preferred destination for high skill workers," Inderfurth and Miller wrote.

"As part of the global competition for innovation and knowledge, other nations is keen to absorb the talent that the U.S. turns away," they noted suggesting, "In order to remain competitive and innovative, we must roll out the welcome mat."

Read More: 6 Most Lucrative Master's Degrees

Read More: 10 Most Popular Freelance Careers