Markets Open Lower As Infosys, TCS Share Prices Slump After H-1B Visa Fee Hike

The Trump administration's decision to increase the H1-B visa fee impacted markets negatively this morning. Both the NSE Nifty50 and BSE Sensex opened lower as shares of major Indian IT companies including Infosys, Tata Consultancy Services, and HCLTech declined sharply following Washington's modification to the H1-B visa program, which is predominantly utilized by Indian technology professionals working in the United States.

The Donald Trump administration has created widespread concern among Indian professionals in America by announcing a dramatic increase in the H-1B non-immigrant visa fee. The previous fee range of $2000-$5000 has been elevated to $100,000, approximately Rs 88 lakh in Indian currency.

Following the announcement, individuals outside the United States worried about whether they would need to pay this increased fee upon their return. Footage showed people disembarking from aircraft at US airports to avoid being stranded abroad. The Trump administration subsequently clarified that the new fee would only apply to new applicants.

The Trump team has indicated that this policy decision aims to discourage organizations from hiring foreign workers. Commerce Secretary Howard Lutnick explained: "The whole idea is, no more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee. So, it's just not economic. You're going to train somebody. You're going to train one of the recent graduates from one of the great universities across our land, train Americans. Stop bringing in people to take our jobs. That's the policy here. $100,000 a year for H-1B visas."

At present, Indians constitute 71 percent of all approved H-1B applicants, according to statistics from US Citizenship and Immigration Services.

New Delhi has stated that the US decision is likely to have "humanitarian consequences by way of the disruption caused for families" and expressed hope that "these disruptions can be addressed suitably by the US authorities."

The Ministry of External Affairs further commented: "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. Skilled talent mobility and exchanges have contributed enormously to technology 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."