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The information technology (IT) industry body Nasscom on Monday clarified that the impact of the United States (US) imposing a one-time $100,000 fee on H-1B visas will be marginal on Indian IT firms, noting that Indian and India-centric firms operating in Washington have significantly reduced their reliance on H-1B visas.
Companies stepping up local hiring
“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,” the industry body said.
“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 added.
Nasscom further mentioned that with the fee being applicable from 2026 onward, companies have time to further expand skilling programs in the US and enhance local hiring. The industry is spending more than $1 billion on local upskilling and recruitment in the US, and the number of local hires has increased significantly.
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H-1B is a high-skilled worker mobility visa and a non-immigrant visa that helps bridge the critical skills gap in the US, with salaries comparable to local hires. Moreover, H-1B workers make up only a tiny fraction of the overall US workforce.
Clarification reduces uncertainty
The industry body said that specifying the higher fees for H-1B visa applications would apply only to new applications has helped reduce uncertainty.
“The clarification makes it 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. It alleviates concerns about business continuity and uncertainty for H-1B holders who are outside the US,” Nasscom said.
On September 20, the White House issued clarifications regarding the recent proclamation that introduced a $100,000 annual fee for H-1B visa applications.
Companies urged employees not to leave the US
Following the announcement of the hike in H-1B visa fees, several companies, including Microsoft, JPMorgan, and Amazon, urged its employees not to leave the US. Companies also advised employees on H-1B visas who were outside the US to return before midnight on Saturday (0400 GMT on Sunday), when the new fee regime takes effect.
However, the White House clarification helped ease concerns.
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