Tuesday, 02 January 2024 12:17 GMT

Rising H1B Charges Set To Impact Indian IT Companies In US


(MENAFN- KNN India) New Delhi, Sep 20 (KNN) The U.S. administration under President Donald Trump has announced a new annual fee of USD 100,000 for H-1B visa holders, a move that is expected to hit the Indian IT industry significantly.

The visa, which allows foreign professionals to work in the United States, has long been a key pathway for Indian tech talent.

Data from the U.S. Citizenship and Immigration Services (USCIS) shows that 71% of H-1B visa beneficiaries in 2024 were Indians, followed by China with nearly 12%.

The majority of these workers are employed in computer-related roles, which accounted for 65% of H-1B positions last year. The median annual salary of these professionals was about USD 123,600.

Several top Indian IT companies are among the largest recipients of H-1B visas. In fiscal year 2025, Tata Consultancy Services (TCS) secured over 5,500 approvals, while Cognizant received 3,700.

Infosys had 2,004, LTIMindtree 1,807, and HCL Technologies 1,728 visas. These firms heavily rely on the U.S. market for their revenues and have historically used H-1B visas to deploy skilled Indian professionals onsite.

Industry experts, however, believe Indian IT companies are better prepared now compared to earlier years. According to CP Gurnani, co-founder and vice-chairman of AIonOS, firms have already reduced their dependency on H-1B visas by more than half.

Companies are increasingly hiring locally in the U.S., investing in automation, and strengthening global delivery models to manage risks.

The Trump administration has defended the move, arguing that the H-1B program has been misused to replace American workers with cheaper foreign talent, particularly in STEM roles.

The White House claims the new fee will discourage companies from relying excessively on overseas professionals and encourage the hiring of local workers.

(KNN Bureau)

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