The National Association of Software and Service Companies (Nasscom) stated on Monday that the US clarification that the H-1B visa fee hike will not affect current visa holders and will apply as a one-time fee only to fresh petitions has helped address the immediate ambiguity surrounding eligibility and timelines and alleviate concerns about business continuity and uncertainty for H-1B holders who were outside the US.
Maintaining that Indian and India-centric companies operating in the US have significantly reduced their dependencies on H-1B visas and are increasing local hiring, Nasscom said, “Given this, we anticipate only a marginal impact for the IT sector. Moreover, with the fee being applicable from 2026 onwards, companies have time to further step up skilling programs in the US and enhance local hiring," said the apex industry body.
The industry is spending over US $1 billion on local upskilling and hiring in the US, and the number of locally hired workforce has increased tremendously. According to available data, the number of H-1B visas issued to leading Indian and India-centric companies has decreased from 14,792 in 2015 to 10,162 in 2024. H-1B workers for the top 10 Indian and India-centric companies are less than 1 per cent of their entire employee base. "Given this trajectory, we anticipate only a marginal impact for the sector," said Nasscom.
H-1B is high-skilled worker mobility and non-immigrant visa that bridges the critical skills gap in the US with salaries on a par with locally hired employees. According to Nasscom, H-1B workers are a mere decimal point of the overall US workforce.
"Nasscom has consistently advocated for predictable and stable skilled talent mobility frameworks, which are critical for sustaining national competitiveness and have long fuelled US innovation and economic growth. Skilled talent mobility will be central to enabling businesses to make forward-looking investment decisions, accelerate research and strengthen nations' position in the global innovation economy," Nasscom said.
The Indian IT industry was relieved on Sunday after the US government clarified that the H-1B visa application fee increase to US $100,000 applies only to new applicants and does not affect existing visa holders or renewals. The H-1B visa fee ranges from about US $2,000-5,000, depending on employer size and other costs.
While some industry experts said they foresee no 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 deferred impact, which would eventually require reassessment of business strategies by IT companies if the rule stays.
Also read: H-1B visa fee hike may hit US more than India: GTRI
White House officials' clarification came with a lag of a few hours after President Donald Trump signed the proclamation raising the application fee on the visas used by companies to hire workers, including from India, to live and work in the US. In its immediate aftermath, it set off a frenzied response among companies as well as H-1B holders travelling outside the US about the deadline of September 21, leading to chaotic scenes at some airports.
Notably, Indian tech professionals account for the bulk of H-1Bs, over 70 per cent plus. According to the USCIS website, for fiscal year 2025 (data as of June 30, 2025), Amazon topped the list of H-1B visa approvals at 10,044, followed by TCS (5,505), Microsoft Corp (5,189), Meta (5,123), Apple (4,202), Google (4,181), Cognizant (2,493), JP Morgan Chase (2,440), Walmart (2,390) and Deloitte Consulting (2,353).
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