Nasscom says impact of H-1B visa fee hike will be marginal on Indian IT firms

By Anjali Sharma

WASHINGTON – The Information technology industry body Nasscom said on Monday that the impact of the US imposed one-time USD 100,000 fee on H-1B visas will be marginal on Indian IT firms.

It added that Indian and India-centric firms operating in Washington have significantly reduced their reliance on H-1B visas.

Nasscom noted “Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependence on H-1B visas and steadily increased their local hiring. As per available data, H-1B visas issued to leading Indian and India-centric companies have decreased from 14,792 in 2015 to 10,162 in 2024.”

”H 1B workers for the top 10 Indian companies account for less than 1 per cent of their entire employee base. Given this trajectory, we anticipate only a marginal impact on the sector,” it said.

It said “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.”

It noted that the industry is spending over USD 1 billion on local upskilling and hiring in the US, and the number of local hires has increased tremendously.

“The clarification makes clear that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions. This has helped address the immediate ambiguity surrounding eligibility & timelines,” it said.

Nasscom said that specifying that the higher fees for H-1B visa applications would apply only to new applications has helped reduce uncertainty.

President Trump announced an up to 50-fold hike in the cost of skilled worker permits to USD 100,000.

Silicon Valley firms urged staff not to travel outside the country, overseas workers scrambled for flights, and immigration lawyers worked overtime to decode the order, as reported in media.