US Imposes $100,000 Annual Fee on H-1B Visas, Impacting Indian Tech Sector
The US administration has imposed a staggering $100,000 annual fee on new H-1B visa applications, a move set to severely impact Indian tech professionals and companies. Indians comprise over 70% of H-1B holders. The Indian government expressed concern over potential "humanitarian consequences" for families, while industry body Nasscom warned of business disruptions. The Indian Embassy in the US has issued an emergency helpline. The policy change has sent shockwaves through the global IT industry and among Indian workers in the US.
Unpacked:
The new fee primarily affects new H-1B visa applicants, particularly Indian tech professionals, as Indians make up over 70% of all H-1B holders. Smaller companies and individual applicants are likely to face the greatest financial burden, while large firms may mitigate the impact through local hiring or shifting work offshore.
The $100,000 fee applies only to new H-1B visa applications and does not affect existing H-1B visa holders or those already in the US on this visa.
Major Indian IT firms like TCS, Infosys, and Wipro have reduced their reliance on H-1B visas by increasing local US hiring, using subcontractors, and focusing on offshore delivery. This shift helps them limit the impact of higher visa costs.
The fee increase has raised diplomatic tensions, with India expressing humanitarian and economic concerns. It may disrupt the global tech talent pipeline, impact business operations, and lead to increased costs for US firms relying on skilled foreign workers.