Nasscom warns USD 100,000 H-1B fee could disrupt Indian IT services

The US plans to raise H-1B visa fees to USD 100,000, potentially disrupting Indian IT companies’ onshore projects. Nasscom flags concerns over the one-day implementation deadline and calls for adequate transition periods to minimize global business and talent disruptions

New Delhi: Industry body Nasscom on Saturday said the US’s move to raise H-1B visa application fee to USD 100,000 will impact India’s technology services companies as business continuity will be disrupted for onshore projects that may require “adjustments”.

The apex body also flagged concerns over the September 21 timeline for implementation, saying a one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. The US move will impact Indian nationals who are on H-1B visas working for global and Indian companies, it said in a statement.

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“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, while business continuity will be disrupted for onshore projects that may require adjustments.

“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, it asserted.

“The timeline for implementation (anyone entering the U.S. after 12:01 a.m., September 21) is also a concern. A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” it said.

Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption, as per Nasscom. Nasscom has consistently emphasised that high-skill talent is vital to driving innovation, competitiveness, and growth for America’s economy.

This, it said, is especially critical at a time when advances in AI and other frontier technologies are set to define global competitiveness. High-skill talent will remain central to sustaining America’s innovation leadership and long-term economic strength.

“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 said.

US President Donald Trump on Friday signed a proclamation that will raise the fee for H-1B visas to a steep USD 100,000 annually. The H-1B visa fee ranges from about USD 2,000 to USD 5,000, depending on employer size and other costs.

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 Congress-mandated pool is 650,000 such visas every year, along with an additional 20,000 visas reserved for those who have earned advanced degrees in the US.

A look at the USCIS website shows that 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 visa fee blow comes at a time when the USD 283 billion Indian IT sector is already rattled by a turbulent 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.