H-1B Visa Fee Hike: How Will It Impact Indian IT Companies, Workers?

H-1B Visa Fee Hike: Indian IT companies like Tata Consultancy Services (TCS), Infosys, Wipro, HCL Tech, and more will be in focus in the coming days, following the Trump administration’s move to hike the annual H-1B visa fee hike from $1000 to a staggering $100,000. The proclamation said that the number of STEM workers doubled between 2000 and 2019, while total STEM job growth lagged. Moreover, it alleged that US firms have replaced American workers with H-1B visa holders, calling it a “systematic abuse”.

How Will It Impact Indian IT Companies And Workers?

Indian IT giants like Infosys, TCS, Wipro, and HCLTech heavily rely on the H-1B visa program to deploy skilled professionals to the US. With Indian nationals accounting for 70% of H-1B visa holders, the new fee structure poses a substantial

financial burden. The increased costs may lead companies to reconsider their US operations, potentially shifting focus to other regions or reducing their US workforce.

Infosys ADRs dropped as much as 4.5% in Friday’s trade, while Wipro slid 3.4%. Other leading users of the H-1B programme also lost ground, with Cognizant Technology down 4.3% and consulting giant Accenture slipping 1.3%.

However, India IT services firms have reduced their reliance on H-1B visas in the past few years. TCS, Infosys, HCL Technologies, Wipro, LTIMindtree and Tech Mahindra have cut H-1B visa issuance by an average of 46 per cent approximately, according to an FE report.

The latest move is expected to break “American dream” for many Indian IT workers, as they are among the largest users of H-1B visas. The programme, which allows employment in the US for three years with a possible three-year extension, has long been a key gateway for Indian technology workers. With Indian nationals already facing a decades-long backlog for permanent residency, the new annual cost raises doubts over the continued viability of companies sponsoring such workers.

The proclamation was accompanied by the unveiling of a new “Gold Card” visa, which offers a fast-track path to US residency for foreigners of “extraordinary ability” willing to invest $1–2 million into the US Treasury.

It will create disincentives to attract the world’s smartest talent to the US, says Deedy Das, co-founder of Menlo Ventures. “If the US ceases to attract the best talent, it drastically reduces it’s ability to innovate and grow the economy. It makes US’ global competitiveness a lot worse,” he adds.