US visa shocker: Indian industry says $100,000 H-1B fee hike a disruptor, cries foul over deadline

New Delhi, Sep 20 (PTI) Trouble mounted for the USD 285-billion Indian IT sector in its largest outsourcing market, as the US decided to hike H-1B visa application fee to USD 100,000 (about Rs 88 lakh), with apex body Nasscom warning that business continuity for onshore projects will be disrupted.

The Indian industry -- reeling, as it is, under global macroeconomic woes and delayed client decisions due to trade tensions -- decried the move and voiced serious concerns over the September 21 implementation timeline, saying the tight one-day deadline creates significant uncertainty for businesses, professionals, and students worldwide.

The US visa decision reportedly sparked chaos at many airports. Social media was flooded with dramatic videos of Indian tech workers hurriedly disembarking moments after the sudden announcement by the US administration.

Several X users penned posts about flights delays as H-1B techies worried about US re-entry challenges chose not to leave the US even after boarding aircraft; there were those who, worried over field interpretations of the order, changed plans enroute India, where they typically head this time of the year for Navratri festivities.

Notably, Indian tech professionals account for bulk of H-1Bs, over 70 per cent. Nasscom has urged its member companies to urgently get their H-1B employees who are currently outside America, to return to the US.

Sources said the Indian government is actively engaging with the IT industry and the US administration to find a way forward on H-1B issue, and pointed out that the application fee increase hits American companies even harder as they are significant users of these visas for highly skilled professionals.

Indian IT companies TCS, Infosys, Wipro, HCL Tech, Tech Mahindra and others did not respond to emails seeking comments on the announcement. The ADRs did respond to the announcement, though scrips of Indian and India-centric companies, including Infosys and Wipro, that are listed on US bourses fell sharply after US President Donald Trump signed the proclamation imposing USD 100,000 annual visa fee.

Nasscom, in a statement, said that US' move will impact Indian nationals that are on H-1B visas working for global and Indian companies.

"While we are reviewing the finer details of the order, adjustments of this nature can potentially have ripple effects on America's innovation ecosystem and the wider job economy," it said.

India's technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments, Nasscom said.

"Companies will work closely with clients to adapt and manage transitions," it added.

Nasscom drew attention to India and India-centric companies steadily reducing their reliance on these visas through increased local hiring in recent years. It said these companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups.

The H-1B workers for these companies by no means are a threat to national security in the US, Nasscom asserted.

"While developments are underway, we will continue to monitor developments closely, engage with industry stakeholders on the potential implications, and seek further clarity on the discretionary waiver process, to be granted by the Secretary of DHS," Nasscom statement said.

According to USCIS website, for FY25 (data as on June 30, 2025), Amazon topped the list of H-1B visa approvals at 10,044. In that list of top ten beneficiaries, TCS (5,505) is at the second spot followed by Microsoft Corp (5,189), Meta (5,123), Apple (4,202), Google (4,181), Cognizant (2,493), JP Morgan Chase (2,440), Walmart (2,390) and Deloitte Consulting (2,353). The top 20 list includes Infosys (2,004), LTIMindtree (1,807), and HCL America (1,728).

The USD 100,000 annual fee imposed by the US on H-1B visas will escalate costs and erode competitiveness for heavy H-1B users and may potentially disrupt business models and revenue streams for Indian IT professionals and companies, Sajai Singh, Partner JSA Advocates and Solicitors said.

The H-1B visa application fee ranges from about USD 2,000-5,000, depending on employer size and other costs. That number is now set to be USD 100,000 annually, with US President Donald Trump on Friday signing proclamation that will raise the fee for H-1B visas.

Indian techies are among the main beneficiaries of the US H-1B visa program, which attracts top talent and expertise from around the globe. The Congressional mandated pool is 65,0000 such visas every year, along with an additional 20,000 visas reserved for those who have earned advanced degrees in the US.

Singh from JSA Advocates and Solicitors said USD 100,000 annual fee on H-1B visas may force IT companies to reassess hiring strategies and business models. Indian IT companies - those relying heavily on H1B visas - may lose their competitive edge, according to him.

Singh noted that there may be potential disruption of business models and revenue streams for Indian IT professionals and companies.

GTT Data Solutions Ltd and 5F World Chairman Ganesh Natarajan observed that the 'flat-world' dream is slipping away.

"Companies will have to restrict cross-border travel and more work will be done through GCCs in countries like India, Mexico and Philippines where talent is there. The current talent model may change substantially if this rule stays. This could benefit countries like India in the long term but it will take a couple of years for the new work and talent model to crystallise," Natarajan said.

Industry veteran and Co-Founder and Vice Chairman, AIonOS, CP Gurnani, however, asserted that the impact on business will be minimal given that over the past several years, Indian IT firms have significantly reduced their reliance on the H-1B visa, with filings dropping by over 50 per cent.

"This shift is a result of our ongoing strategy to hire more locally, invest in automation, and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we've already adapted to this evolving landscape," he said.

Former Infosys CFO Mohandas Pai said the US move will dampen fresh applications by companies and may accelerate offshoring in coming months.

Dismissing the notion that companies use H-1B visas to send cheap labour to the US, Pai pointed out that the average salary paid by the top 20 H-1B employers exceeds USD 100,000, and criticised what he termed as misplaced "rhetoric carrying on".

The visa fee blow comes at a time when the Indian IT sector - which counts US as its largest export market - is struggling with volatile business environment in the world's largest outsourcing market.

The sector faces delays in client decision-making amid macroeconomic uncertainties, tariffs and trade wars, geopolitical tensions, and the changing landscape driven by AI.

Adding to the concerns is the legislative threat of the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno, which if passed, will curb outsourcing and promote domestic employment by imposing a 25 per cent levy on payments made by American companies to foreign workers for services benefiting US consumers.

The H-1B nonimmigrant visa programme 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, Trump said in the proclamation.

White House staff secretary Will Scharf has said the H-1B non-immigrant visa programme is one of the "most abused visa" systems in the country's current immigration system, and it is supposed to allow highly skilled labourers, who work in fields that Americans don't work in, to come into the US.

The Trump administration said the USD 100,000 fee is aimed at ensuring that the people being brought into the country are "actually very highly skilled" and do not replace American workers. PTI MBI TRB