H-1B Visa Fee Hike: 'There Will Be Immediate Fallout...', India In Talks With Washington DC, NASSCOM, Says Report

(MENAFN- Live Mint) H-1B Visa Fee Hike: On the Donald Trump administration slapping a $100,000 fee on H1-B visas, the officials said New Delhi are in touch with the Indian Embassy in Washington and is holding consultations with Indian tech industry body NASSCOM.

“There will be an immediate fallout . We have to see how companies adapt to it,” the official noted, sources close to development stated, as reported by Moneycontrol.

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The official stressed that the new costs are likely to weigh more heavily on American technology firms, which rely heavily on Indian professionals for specialised roles.

H-1B Visa Fee Hike: American tech firms to bear the brunt?

The newly imposed fee on H-1B visa is expected to hit American technology companies the hardest, given their heavy dependence on Indian talent for specialised roles such as engineering, programming, and data science.

“The new costs are likely to weigh more heavily on American technology firms, which rely heavily on Indian professionals for specialised roles,” the official emphasised.

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H-1B visas are a cornerstone of the US tech industry , allowing companies to sponsor foreign workers with niche skill sets. Currently, the United States issues 85,000 H-1B visas annually, with India accounting for nearly 75% of these permits.

The process operates on a lottery system, making the visa both highly competitive and vital for staffing critical projects. Many Indian workers relocate permanently, while others travel back and forth between the two countries to support international operations.

H-1B Visa Fee Hike: India sees potential upside amid disruption

While the immediate response is one of concern, Indian authorities also see a potential silver lining . The sharp increase in visa costs may encourage more global capability centres (GCCs) to be set up in India, reducing reliance on US-based teams.

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“In a positive sense, more companies will be setting up global capability centres to meet the shortage of talent,” the official said.

India's IT sector has long been a hub for multinational corporations, and this development could accelerate that trend, potentially boosting domestic job creation and innovation.

H-1B Visa Fee Hike: Legal challenges expected in US

The Trump administration's decision is already being described as sweeping and controversial, with legal experts predicting that it may face significant challenges in US courts.

The move came alongside the launch of a $1 million“gold card” residency programme, aimed at attracting ultra-wealthy immigrants, a plan Trump had hinted at for months.

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“The main thing is, we're going to have great people coming in, and they're going to be paying,” Trump told reporters in the Oval Office during the announcement.

Commerce Secretary Howard Lutnick , who stood alongside Trump, claimed,“All the big companies are on board.”

H-1B Visa Fee Hike: Tech leaders warn of talent crisis

The decision has drawn criticism from prominent tech figures, including Tesla CEO Elon Musk, once a close ally of Trump. Industry leaders have repeatedly cautioned that restricting H-1B visas could deepen the US tech talent shortage, harming innovation and slowing economic growth.

“The United States does not have enough homegrown talent to fill important tech sector job vacancies,” Elon Musk has previously warned.

With many American firms depending on Indian professionals to drive their operations, the steep new fee threatens to disrupt hiring strategies and project timelines.

Also Read | H-1B Visa: Why Trump imposed $100,000 fee for highly skilled foreign workers? H-1B Visa Fee Hike: What lies ahead

As the September 21 deadline looms for H-1B holders currently outside the US, uncertainty prevails. Immigration experts are urging affected workers to act immediately to avoid being locked out of the country.

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