US' H-1B Visa Application Fee Hike Will Hit Indian Tech Companies: Industry Body

New Delhi:

Nasscom expressed serious concerns on Saturday regarding the United States' decision to increase H-1B visa application fees to USD 100,000, warning this will significantly impact Indian technology service companies and disrupt business continuity for projects requiring onshore presence.

The industry body highlighted particular alarm about the September 21 implementation deadline, stating that such an abrupt one-day notice creates substantial uncertainty for businesses, professionals, and students globally who rely on these visas.

The fee hike will directly affect Indian nationals working on H-1B visas for both global and Indian companies operating in the US market, according to Nasscom's statement.

"We are currently analyzing the detailed implications, but adjustments of this magnitude could potentially create ripple effects throughout America's innovation ecosystem and broader employment landscape," the statement noted.

Indian technology services providers face particular challenges as onshore project continuity may require significant operational changes. Companies will need to collaborate closely with clients to manage these transitions effectively.

Nasscom emphasized that Indian companies have steadily reduced their dependence on these visas in recent years by increasing local hiring within the United States.

The industry body also pointed out that these companies consistently adhere to all required governance and compliance standards for H-1B processes, pay prevailing wages, and contribute substantially to local economies through innovation partnerships with academic institutions and startups.

The organization firmly asserted that H-1B workers employed by these companies do not pose any national security threat to the United States.

"The implementation timeline, affecting anyone entering the U.S. after 12:01 a.m. on September 21, is particularly concerning. A single-day deadline generates tremendous uncertainty across global business sectors, professional communities, and international students," Nasscom stated.

Policy changes with such far-reaching implications should include appropriate transition periods to allow organizations and individuals to plan effectively and minimize disruption, according to the industry body.

Nasscom reiterated its long-standing position that highly skilled talent is essential for driving innovation, competitiveness, and economic growth in America.

This need is particularly critical now as advancements in artificial intelligence and other emerging technologies increasingly define global competitive advantage.

Highly skilled talent will remain fundamental to maintaining America's leadership in innovation and long-term economic strength.

"As this situation evolves, we will continue monitoring developments closely, engaging with industry stakeholders regarding potential implications, and seeking additional clarity on the discretionary waiver process to be administered by the Department of Homeland Security Secretary," Nasscom concluded.

On Friday, US President Donald Trump signed a proclamation dramatically increasing H-1B visa fees from the current USD 2,000-5,000 range (depending on employer size and other factors) to USD 100,000 annually.

Indian technology professionals represent a significant portion of H-1B visa recipients, a program designed to attract global expertise and talent. Congress mandates an annual pool of 650,000 such visas, plus an additional 20,000 reserved for individuals with advanced US degrees.

According to USCIS data for FY25 (as of June 30, 2025), Amazon leads H-1B visa approvals with 10,044 visas.

Among the top ten beneficiaries are TCS (5,505) in second position, 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). Other notable companies in the top 20 include Infosys (2,004), LTIMindtree (1,807), and HCL America (1,728).

This visa fee increase comes at a challenging time for India's USD 283 billion IT sector, which already faces business uncertainties in the world's largest outsourcing market. The industry is navigating delayed client decision-making amid macroeconomic uncertainties, trade tensions, geopolitical issues, and AI-driven market transformations.

Further compounding these challenges is the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno. If passed, this legislation would restrict outsourcing and promote domestic employment by imposing a 25 percent tax on payments made by American companies to foreign workers providing services benefiting US consumers.