$100,000 H-1B Visa Shock: How Trump's Policy Could Disrupt India's $285B IT Empire

When the announcement hit late Friday, many Indian tech professionals felt their world shift overnight. US President Donald Trump had signed a proclamation imposing a staggering $100,000 annual fee for H-1B visas, the program that has allowed thousands of Indian workers to pursue high-tech careers in America. For a sector already navigating global uncertainties, the news was a jolt.

Families in Flux

Across airports in India and the US, chaos was palpable. Social media was flooded with videos of professionals hastily disembarking from planes, canceling trips home, or making last-minute reversals mid-journey. Navratri plans were shelved, flights delayed, and family reunions postponed.

India's foreign ministry highlighted the human cost:“This measure is likely to have humanitarian consequences by way of the disruption caused for families. The government hopes that these disruptions can be addressed suitably by the US authorities.”

Within hours, Indian missions and posts worldwide were mobilized to assist citizens trying to navigate the new rules.

Indian nationals seeking emergency assistance may call cell number +1-202-550-9931 (and WhatsApp). This number should be used only by Indian nationals seeking immediate emergency assistance and not for routine consular queries.

- India in USA (@IndianEmbassyUS) September 20, 2025

Nasscom Sounds the Alarm

India's top IT industry body, Nasscom, warned that the abrupt change could disrupt business continuity. 

“A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption,” the group said.

For Indian IT firms operating in the US, which include TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra, the timing could not be worse. The sector is already grappling with delayed client decisions, macroeconomic pressures, and the rise of AI-driven business transformations.

From $5,000 to $100,000

Until now, the H-1B visa application fee ranged from $2,000 to $5,000, depending on employer size and related costs. The new proclamation multiplies that figure nearly 20-fold. 

Commerce Secretary Howard Lutnick clarified:“The total fee for three years will be USD 300,000.”

A White House official added further clarification:“The H-1B fee is likely to face legal challenges. But if it survives, companies that hire skilled international workers would have to pay USD 100,000 each year for any employee working on the visa, for up to six years. The fee applies only to new applicants.”

The implications for companies that rely heavily on H-1B talent - Amazon, Microsoft, Google, Meta, and the Indian IT giants - are immense. For many, this is not just a visa fee hike, but a potential disruption to revenue models, workforce planning, and innovation pipelines.

Families Urged to Return

The sudden rollout of the proclamation, effective 12:01 am EDT on September 21, prompted immigration attorneys and companies to advise H-1B visa holders or their family members currently outside the US to return within 24 hours, or risk being stranded and denied entry. 

For many professionals, this is not only about their jobs but about whether their children can return to American schools or if spouses can continue with pending visa extensions.

A Longtime Target

Trump has long viewed the H-1B program with suspicion. In the proclamation, he said it was created to bring“temporary workers into the US to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.”

He added:“The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security.”

White House staff secretary Will Scharf echoed the sentiment:“The H-1B non-immigrant visa programme is one of the most abused visa systems in the country's current immigration system.”

Tech Leaders Raise Red Flags

Even within the US, the decision has stirred concern. Elon Musk, a former Trump ally, warned that America simply lacks sufficient homegrown talent for the tech sector's needs.

Industry veterans in India have also weighed in. Ganesh Natarajan, Chairman of GTT Data Solutions Ltd and 5F World, noted:“Companies will have to restrict cross-border travel and more work will be done through GCCs in countries like India, Mexico and Philippines where talent is there. The current talent model may change substantially if this rule stays. This could benefit countries like India in the long term but it will take a couple of years for the new work and talent model to crystallise.”

Former Infosys CFO Mohandas Pai added:“The average salary paid by the top 20 H-1B employers exceeds USD 100,000.” He criticized the rhetoric claiming H-1B visas are used for cheap labour, while warning that the move may accelerate offshoring.

CP Gurnani, Co-Founder of AIonOS, believes the impact will be manageable.“This shift is a result of our ongoing strategy to hire more locally, invest in automation, and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we've already adapted to this evolving landscape.”

The Human Side of Policy

While boardrooms and industry experts debate strategies, the immediate challenge is deeply personal for H-1B workers and their families. Children face disruptions to schooling. Spouses worry about work authorizations. Home leases and mortgages hang in the balance.

Randhir Jaiswal, spokesperson for India's External Affairs Ministry, noted:“Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries.”

Beyond the Fee

The H-1B proclamation comes alongside Trump's other immigration initiatives, including a $1 million“gold card” residency program.

“The main thing is, we're going to have great people coming in, and they're going to be paying,” he said, framing the changes as a win-win for select elite talent - but a daunting barrier for the majority of skilled Indian workers.

A Sector at a Crossroads

For the Indian IT industry, the USD 100,000 visa fee is a test of resilience. Some companies may accelerate offshoring to countries like India, Mexico, and the Philippines. Others may double down on local hiring and automation.

One thing is clear: the policy underscores the fragile intersection of geopolitics, immigration, and global talent mobility. For now, Indian professionals, their families, and the companies that employ them are left navigating a rapidly shifting landscape - a human story of ambition, uncertainty, and adaptation unfolding across continents.

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