H-1B Visa Fee Shock: Nasscom Sees 'Marginal Impact', Says Indian Companies To Boost Local Hiring In US

(MENAFN- Live Mint) Donald Trump's $1,00,000 fee hike on H-1B visa has sent shockwaves through the global talent industry, which brings thousands of skilled foreign workers to the US each year. India faces the biggest impact as it was the largest beneficiary of the programme last year, accounting for 71% of approved visas in 2024.

Even though the US clarified that the hike will not affect current visa holders and will apply as a one-time fee only for fresh petitions, the confusion and ambiguity around the fee hike remain.

To offset the impact of this change, Indian and India-centric companies operating in the US have decided to significantly reduce their dependencies on H-1B visas by increasing local hiring, said Nasscom on Monday, adding that given this, "we anticipate only a marginal impact for the sector".

"Moreover, with the fee being applicable from 2026 onward, it gives companies time to further step up skilling programs in the US and enhance local hiring," the apex industry body told PTI.

The shift in hiring

Nasscom confirmed that Indian and India-centric companies operating in the US were already way ahead of this curve. Over the years, they have significantly reduced their dependence on H-1B visas and steadily increased their local hiring.

The industry is spending over $1 billion to upskill local workers and boost hiring in the US. As a result, the number of local hires has increased tremendously, PTI reported.

Also Read | H-1B visa fee hike: India in talks with Washington DC, NASSCOM, says Report

According to available data, the number of H-1B visas issued to leading Indian and India-centric companies has seen a steady decline, from 14,792 in 2015 to 10,162 in 2024. Some companies have seen their H-1B filings drop by over 50% in recent years.

H-1B workers for the top 10 Indian and India-centric companies are less than 1% of their entire employee base. "Given this trajectory, we anticipate only a marginal impact for the sector," Nasscom said.

Who will the new fee apply to?

The US government clarified that the H-1B visa application fee increase to $100,000 will only apply to new applicants and does not affect existing visa holders or renewals. The H-1B visa fee ranges from about $2,000 to $5,000, which depends on the employer's size.

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

While some industry experts noted that they don't anticipate any immediate adverse impact over the next 6-12 months as the hike takes effect only in the upcoming application cycle, others cautioned that there could be a major impact requiring reassessment eventually of business strategies by IT companies, if the rule stays, PTI reported.

People respond to rule change

As an aftermath of the change, social media platforms such as LinkedIn and X were flooded with posts and videos of Indian techies hurriedly disembarking from aircraft moments after the sudden announcement by the US administration.

Several X users posted about flight delays as H-1B workers, anxious about US re-entry challenges, chose not to leave the US even after boarding their flight for Navratri festivities, PTI reported.

Who are the top H-1B visa beneficiaries?

According to USCIS data until June 30, Amazon topped the list of H-1B visa approvals at 10,044.

In that list of top ten beneficiaries , TCS (5505) is at the second spot, followed by Microsoft Corp (5189), Meta (5123), Apple (4202), Google (4181), Cognizant (2493), JP Morgan Chase (2440), Walmart (2390) and Deloitte Consulting (2353). The top 20 list includes Infosys (2004), LTIMindtree (1807), and HCL America (1728).

Also Read | PM Modi's first remark amid H-1B visa fee hike: 'Our biggest enemy is...'

The Congressional-mandated cap allows 65,000 H-1B visas each year, with an additional 20,000 visas reserved for individuals holding advanced degrees in the US, the news report noted.

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