H-1B visa fee hike: Indian tech firms could face disruption; 'timeline for implementation is a concern' says NASSCOM

Industry body Nasscom on Saturday raised concerns over the US administration's decision to increase the H-1B visa fee to $100,000, saying that it could disrupt Indian technology services companies and their onshore projects.The organisation also criticised the tight September 21 implementation date, warning that a one-day deadline creates “considerable uncertainty for businesses, professionals, and students across the world.”The fee rise will affect Indian nationals working on H-1B visas for both global and Indian companies. In a statement Nasscom said, "While we are reviewing the finer details of the order, adjustments of this nature can potentially have ripple effects on America's innovation ecosystem and the wider job economy."The trade body added that Indian IT companies have been reducing their reliance on H-1B visas in recent years through increased local hiring. These companies also comply with all US governance and wage rules and contribute to the local economy and innovation partnerships with universities and startups.H-1B workers, Nasscom stressed, by no means are a threat to national security in the US."Companies will work closely with clients to adapt and manage transitions," it said, highlighting the challenges of maintaining business continuity.

Nasscom also criticised the short notice, saying major policy changes are better introduced with enough transition time to allow firms and individuals to plan effectively and minimise disruption.The body underlined the importance of high-skill talent for America, particularly as advances in AI and other frontier technologies shape global competitiveness."While developments are underway, we will continue to monitor developments closely, engage with industry stakeholders on the potential implications, and seek further clarity on the discretionary waiver process, to be granted by the Secretary of DHS," Nasscom said, as cited by PTI.The fee hike follows a proclamation signed by US President Donald Trump on Friday. The new fee is a steep $100,000 per year, compared with the current range of $2,000 to $5,000 depending on the employer.Indian tech professionals are among the main beneficiaries of the H-1B programme, which attracts top global talent. The US Congress allows 650,000 H-1B visas each year, with an extra 20,000 reserved for those holding advanced US degrees.Data from USCIS for FY25 (as of 30 June 2025) shows Amazon leading with 10,044 H-1B approvals. TCS came second with 5,505, followed by Microsoft (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). The top 20 also include Infosys (2,004), LTIMindtree (1,807), and HCL America (1,728).The fee increase comes at a sensitive time for the $283 billion Indian IT sector, which is already facing delays in client decisions amid macroeconomic uncertainty, trade tensions, geopolitical risks, and rapid AI-driven change.Adding to the sector’s challenges is the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno. If passed, it would discourage outsourcing by imposing a 25% levy on payments by American companies to foreign workers providing services for US consumers.