New US $100,000 H-1B Visa Fee Could Disrupt Indian IT Industry, Warns Nasscom
September 20, 2025 | New Delhi – A recent announcement by the White House imposing a new, hefty $100,000 annual fee on H-1B visa applications has raised significant concerns within India’s technology sector. Nasscom, India’s premier industry association representing the $283 billion IT and business process outsourcing (BPO) industry, warned on Saturday that the newly introduced fee could severely disrupt operations of Indian IT services firms that rely heavily on deploying skilled professionals to the United States.
The H-1B visa program has long been a critical channel for Indian IT companies to send highly skilled workers to support ongoing projects across the US market. However, the abrupt mandate to pay an exorbitant additional fee, introduced as part of the US administration’s effort to overhaul the temporary employment visa system, poses a direct challenge to this model.
Industry Body Highlights Disruptions and Uncertainty
Nasscom expressed strong reservations about the suddenness of the policy’s rollout, highlighting that the one-day deadline for compliance has created “considerable uncertainty for businesses, professionals, and students across the world.” The association underscored that the new fee structure would not only impact Indian nationals abroad but also disrupt the continuity of existing onshore projects critical to the global delivery model of Indian IT firms.
“The additional cost burden and administrative challenges introduced by this fee could have ripple effects beyond individual companies, potentially affecting the broader US innovation ecosystem,” Nasscom noted. Companies will be forced to make cost adjustments, which may also impact global job markets and bilateral business relations.
Response from Major US Tech Companies
In response to the White House announcement on Friday, several US technology giants including Microsoft, Amazon, and JPMorgan have internally advised their H-1B visa-holding employees either to remain in the United States or to return promptly if currently abroad. Reuters reviewed internal communications suggesting that these companies are trying to manage the impact of the policy while ensuring minimal operational disruption.
Context: US Immigration Policy and H-1B Program
Since assuming office in January, President Donald Trump’s administration has pursued a broad crackdown on immigration, combining efforts to tighten legal pathways for foreign workers alongside broader immigration reforms. The $100,000 fee is considered the most prominent move to date aimed at reshaping the H-1B visa system, which has traditionally facilitated the flow of specialized talent into the US tech sector.
While the White House clarified that the new fee would not apply retroactively to current visa holders, new applicants and certain renewals would now be subject to the increased charge, effectively raising the cost of employing foreign technology professionals in the US.
Potential Impact on India-US IT Collaboration
India remains the largest supplier of H-1B visa holders, with its technology workforce playing an integral role in the US IT market. Any disruption caused by the new fee could lead Indian IT firms to reevaluate their US presence, possibly scaling down operations or altering hiring and deployment strategies.
Industry experts warn that the policy could inadvertently discourage innovation and slow down project deliveries that persistently rely on cross-border talent mobility. The timing and unilateral nature of the policy enforcement have further fueled calls from industry leaders for dialogue between governments to mitigate adverse outcomes.
Looking Ahead
Nasscom and other industry stakeholders are expected to engage with US policymakers to seek clarity and possible relief measures. Meanwhile, the global IT sector remains watchful of how the policy will unfold in practice and what mitigating strategies companies might deploy.
As the IT landscape adapts to the evolving immigration framework, the ongoing cooperation between India and the United States may be tested by this latest regulatory hurdle.
Reporting by Haripriya Suresh; Editing by Hugh Lawson
Image: A man walks during the Nasscom Technology and Leadership Forum 2025 in Mumbai, India (Reuters/Francis Mascarenhas/File Photo)
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