US clarification on H-1B visa fee hike alleviates concern; Indian tech cos to accelerate local hiring in America: Nasscom

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, said Nasscom. It alleviates concerns about business continuity and uncertainty for H-1B holders who were outside the United Stated.

Further, Indian and India-centric companies operating in the US have significantly reduced their dependencies on H-1B visas and are increasing local hiring, it said, 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 programmes in the US and enhance local hiring," the apex industry body said.

The industry is spending over $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 and timelines," said Nasscom.

Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependencies on H-1B visas and steadily increased their local hiring.

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% of their entire employee base. "Given this trajectory, we anticipate only a marginal impact for the sector," it said.

H-1B is high-skilled worker mobility and a non-immigrant visa that bridges the critical skills gap in the US. Salaries are at par with local hires.

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," it added.

The Indian IT industry exhaled a sign of relief on Sunday after the US government clarified that the H-1B visa application fee increase to $100,000 applies only to new applicants and does not affect existing visa holders or renewals. The H-1B visa fee ranges from about $2000 to $5000, depending on employer size and other costs.

While some industry experts noted that they foresee no immediate adverse impact over the next six-12 months as the hike takes effect only in the upcoming application cycle, others cautioned that the delay notwithstanding, there could be a deferred impact requiring reassessment eventually of business strategies by IT companies, if the rule stays.

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, the proclamation 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 scenes of chaos at some airports.

Social media on Saturday was flooded with dramatic videos of Indian techies hurriedly disembarking from aircraft moments after the sudden announcement by the US administration. Several X users penned posts about flight delays as H-1B workers, anxious about US re-entry challenges, chose not to leave the US even after boarding their flight; there were those who, worried over field interpretations of the order, changed plans en route to India, where they typically head this time of the year for Navratri festivities.

Notably, Indian tech professionals account for the bulk of H-1Bs, over 70% 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. 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).

The Congressional-mandated pool is 65,000 such visas every year, along with an additional 20,000 visas reserved for those who have earned advanced degrees in the US.