H-1B Fee Hike: Indians Stand To Lose The Most, Says Visa Consultant As Trump Slaps $100,000 Fee

(MENAFN- Live Mint) US President Donald Trump's executive order to increase the H-1B visa fee to $1,00,000 has caused significant concern among tech companies. A visa consultant has said that Indians stand to lose the most after the US' move

The fee which was previously around a thousand dollars is now raised to $100,000, a move that will hit Indian workers the hardest, ANI quoted Bikram Chabhal, president of the Association of Visa and IELTS Centres (AVIC), as saying.

The H-1B program offers around 65,000 visas annually to employers bringing in temporary foreign workers in specialised fields, and another 20,000 visas for workers with advanced degrees, among which India was the largest beneficiary with a 71% share of approved beneficiaries.

Visa consultants worried about the impact

Chabhal noted that 70% of H-1B visa holders are Indians, followed by Chinese nationals.“Previously, the total fee was $215, plus another $750. Now, it translates to eighty-eight lakh plus in Indian rupees,” he told ANI.

He further added, "I believe these companies will have to struggle a lot in the future. If a company has to pay a fee of one lakh dollars every year, then companies won't be able to afford that much money."

Chabhal stressed that Indians stand to lose the most after this move. "The biggest disadvantage of this seems to be for Indians, as Indians used to go extensively on this visa... After receiving those visas, they would then obtain green cards and become American citizens. This will impact them significantly," he noted.

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Speaking of the future outlook, despite the negative short-term impact, he suggested that the policy shift could indirectly help India. "In the future, this will benefit India more because if specific workers return to India, they will be able to do something good for India. However, America will not find specialised workers in America..." he said.

Why did US hike the visa fee?

Chabhal's remarks came as US Commerce Secretary Howard Lutnick announced details of the new H-1B visa fee during a press conference, describing the decision as a strategy to get rid of lower-skilled training positions while preserving opportunities for highly skilled workers .

"A company that wants to buy an H-1B visa... it's USD 100,000 per year," Lutnick explained. The visa maintains its current structure: three years with one possible renewal for a total of six years.

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The fee, which applies to all H-1B positions regardless of salary or skill level, is designed to make the programme viable only for roles that justify such a substantial cost. "No longer will you put trainees on an H-1B visa -- it's just not economic anymore. If you're going to train people, you're going to train Americans," Lutnick said.

Implications for Indian IT sector

This sudden change is expected to significantly impact Indian IT services companies like Infosys, TCS, and Wipro.

Also Read | Trump H-1B visa fee hike: How tech stocks may react on Monday?

Meanwhile, Industry body Nasscom said the US' move will impact India's technology services companies as business continuity will be disrupted for onshore projects that may require "adjustments".

"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," the apex body said.

Nasscom also flagged concerns over September 21 timeline for implementation saying a one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world.

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