Data from the United States Citizenship and Immigration Services (USCIS) indicates that Indian companies are primary users of H-1B visas.
India's IT industry is set to be significantly impacted by President Donald Trump's decision to implement an annual fee of $100,000 on H-1B visas. This announcement exacerbates an already volatile macroeconomic environment, further complicated by recent tariff increases.
Data from the United States Citizenship and Immigration Services (USCIS) indicates that Indian companies are primary users of H-1B visas. For instance, between Fiscal Year 2009 and Fiscal Year 2025, TCS alone secured 98,259 such visas. The imposition of this fee introduces substantial financial pressure on these firms, potentially altering their operational strategies and recruitment practices within the US market, as per industry experts.
Industry body Nasscom said the abrupt rollout -- applicable to anyone entering the US after 12:01 a.m. on September 21 -- creates "considerable uncertainty for businesses, professionals and students across the world." It warned that "adjustments of this nature can potentially have ripple effects on America's innovation ecosystem and the wider job economy," even as it acknowledged that Indian IT firms have been reducing their dependence on H-1Bs through local hiring. "High-skill talent remains vital to sustaining America's innovation leadership and long-term economic strength," Nasscom stressed.
Mamta Shekhawat, Founder of study abroad platform Gradding.com, said the new policy will sharply reduce opportunities for international graduates. "A fee as high as $100,000 would undoubtedly make US companies think twice before sponsoring H-1B candidates. For many mid-sized firms and start-ups, the cost will outweigh the potential gains," she said. "Even larger corporations will be toying with the ROI figures. The US would subsequently have a dwindling number of opportunities for foreign graduates."
Shekhawat added that Indian IT service companies face the sharpest blow. "The H-1B programme has allowed them to place skilled Indian employees in client-facing US roles. A six-figure fee will unsustainably increase operational costs, lower profit margins and decrease onsite workers. This will push firms toward automation and accelerate offshore delivery to India."
Varun Singh, MD of XIPHIAS Immigration, echoed that sentiment. "A $100,000 H-1B fee doesn't just raise costs -- it turns hiring into a financial gamble rather than a talent opportunity," he said. "For Indian IT giants, the cost doesn't just squeeze margins -- it reshapes the on-site model itself."
Companies to explore alternatives
Analysts say companies are already exploring alternatives. L-1 visas for intra-company transfers, nearshoring to hubs in Latin America and fully remote teams in India and Eastern Europe are expected to gain traction. "High fees won't stop companies from using global talent -- they'll just use it outside America," Singh said.
Shekhawat noted that this shift could accelerate the rise of globally distributed teams. "In the long horizon, firms will continue to work with foreign experts -- just without heavy dependence on US work visas," she said.
American big tech majors, who are major users of H-1Bs today, hire high-skilled foreign workers in the larger salary brackets and this additional fee will not impact their financials to a great extent.
"This would discourage mass H-1B for lower tech salaries from foreign countries largely impacting Indian IT mostly mid to smaller IT services followed by mid to small GCCs and US startups trying to hire from foreign lands. On the basis of margin impact, $100,000 fee will impact Indian companies more. But their dependence on H-1Bs has been coming down over the years. Large Indian IT services players have reduced their dependence on H-1Bs over the last 5-7 years. However, small and mid size Indian IT still depend largely on either H-1Bs or subcontractors in US," said Gaurav Vasu, Founder and CEO, UnearthInsight.
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Published on September 20, 2025
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