From the India Today archives (2025) | When Indian IT felt US visa pinch

The United States announced a dramatic H-1B fee increase on September 19, 2025. Each new H-1B petition filed after September 21 would face a $100,000 charge. That was nearly 70 times the earlier fee range of $1,500-4,000. The move targeted concerns about alleged visa abuse, worker displacement and national security.

The key mechanism is timing and type of application. The $100,000 payment is one-time, not annual. It applies to a new H-1B petition, rather than an existing holder’s renewal. The clarification also said current H-1B holders could still travel in and out of the United States.

The announcement initially caused panic across Indian IT. Companies advised US-based employees to stay put and urged overseas travellers to return. Nasscom said the fees would apply only from 2026, giving companies time to expand US hiring and employee training. The industry remains cautious about longer-term costs.

An H-1B visa is a US work visa for skilled foreign professionals in specialty occupations. It matters because it allows technology companies to place qualified workers in the United States for projects that require specialised expertise. The article describes it as a coveted career route for Indian tech workers.

The pathway often begins with an employee joining an IT company, working for several years, seeking an H-1B assignment, and then pursuing a green card. Indian technology companies use the visa to support work for US clients, including onsite projects. The visa therefore connects a worker’s career plans with a company’s ability to deliver services in the US market.

The new fee threatens that pathway by making new applications far more expensive. Existing holders and renewals were not affected by the clarification. Still, the industry veteran quoted in the article says the aspiration to work in America and eventually obtain a green card has been hurt.

India has an exceptionally large role in the H-1B program. Indian nationals accounted for 71 per cent of approved H-1B visas in FY24. That exposure makes any major US policy change especially important for Indian technology workers and the companies that employ them.

Among large Indian IT companies, Infosys sponsored 8,137 H-1B visas in FY24. Tata Consultancy Services sponsored 7,566, HCL America 2,952, LTIMindtree 2,136 and Wipro 1,636. US firms also relied heavily on the program. Amazon.com Services LLC sponsored 10,044 visas, Microsoft 5,189, Meta 5,123 and Apple 4,202.

The pattern is broader than Indian outsourcing companies alone. Eight of the top ten sponsors were US companies in FY24, rising to nine by June 2025. The figures show that H-1B policy affects both Indian service exporters and major American technology employers.

Indian IT companies use H-1B visas to send skilled employees to the United States for client work. The arrangement helps firms provide technology services where projects require workers to collaborate directly with US customers. It also supports onsite delivery, a traditional part of Indian IT companies’ operating models.

The visa creates a legal route for an employee to work in a US specialty occupation. A company sponsors the worker’s application, and the worker can then support a US assignment. The article’s figures show how central this model has been: Infosys sponsored 8,137 H-1B visas in FY24, while TCS sponsored 7,566.

The model matters because the US accounts for more than half of India’s $224 billion in technology exports. A much higher fee could pressure project margins and disrupt onsite projects. Companies may therefore increase local hiring, training and other delivery arrangements, while assessing how much work can be performed outside the US.

The higher fee could raise the cost of sending Indian employees to the United States. Companies may face pressure to absorb the expense, charge clients more, or use fewer new H-1B placements. The article warns that sustained restrictions could disturb Indian IT exports, traditional business models, project margins, supply chains and onsite projects.

For employees, the first impact was uncertainty. Firms told US-based workers to stay put and advised overseas travellers to return, fearing re-entry problems. The later clarification reduced that immediate fear: the payment was one-time, did not affect renewals, and did not block current holders from travelling. New applicants, however, still face the much higher cost.

US clients could experience changes in staffing or delivery arrangements. Near-term revenue and margin effects may be limited, according to Madhavi Arora, but geopolitical uncertainty, paused IT budgets and AI-driven workplace changes already pressure firms. A sustained fee could make service delivery less flexible and more expensive.

Companies can respond by reducing how often new workers need H-1B visas. One route is to hire more people already based in the United States. Another is to deliver more work remotely from India or other locations, when client needs and project rules allow. These approaches could limit exposure to the $100,000 charge.

The article specifically points to local hiring and employee training. Nasscom said companies have time to step up skilling programmes in the US and enhance local hiring because the new fees apply from 2026. Training can help existing employees handle changing technology and client work without relying only on new overseas transfers.

These changes will not remove every challenge. Some onsite projects require close client interaction, and the article warns that a sustained policy shift could disrupt traditional models. Firms are also dealing with paused client budgets, tariffs and AI tools. A mix of local hiring, remote delivery and targeted training may therefore become more important.

Immigration rules shape how technology services cross borders. India’s IT companies export software and services to US clients, but some projects need skilled employees working inside the United States. H-1B visas provide the route for those workers. The US is therefore both a destination for Indian services and the authority controlling an important staffing channel.

The article places this relationship at large scale. The US accounts for more than half of India’s $224 billion in technology exports. Indians received 71 per cent of approved H-1B visas in FY24. A fee increase can raise the cost of placing workers onsite, affecting project margins, delivery models and supply chains on both sides.

This connects the global division of skilled work with the US economy. Indian companies supply expertise, while US clients provide a major market. The article says sustained restrictions could disturb Indian exports, although the near-term impact may be limited. Local hiring, training and remote work may gradually reshape that connection.