Indian IT investing $1 bn in US talent as H-1B fee hike looms: Nasscom

Nasscom says $100,000 H-1B visa fee from 2026 will have a limited effect as Indian IT firms invest $1 bn in US upskilling and local hiring, reducing dependence on visas

The Indian IT services industry is spending more than $1 billion on local upskilling and hiring in the United States, with the number of local hires rising sharply, industry body Nasscom said in a statement.

 

Nasscom also noted that a clarification from the White House on the recent proclamation introducing a $100,000 annual fee on H-1B visa applications has eased concerns. The clarification has helped address ambiguity surrounding eligibility and timelines, alleviating uncertainty for H-1B holders currently outside the US.

 

Marginal impact from H-1B fee hike 

According to Nasscom, the industry’s decreasing dependence on H-1B visas means the fee hike will have only a limited impact. “As per available data, H-1B issued to the leading India 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 per cent of their entire employee base. Given this trajectory, we anticipate only a marginal impact for the sector,” Nasscom said.

   

The fee will be applicable from 2026 onwards, giving companies time to further enhance local skilling programmes and accelerate hiring in the US. 

 

Shift from visa dependence to local hiring 

Over the years, Indian and India-centric companies operating in the US have steadily reduced their reliance on H-1B visas and significantly increased local hiring. H-1B is a high-skilled worker mobility programme and a non-immigrant visa aimed at bridging critical skills gaps in the US workforce. Salaries for H-1B workers are at par with those of local hires, and these workers represent only a fraction of the overall US labour force. 

 

Predictable mobility key to innovation 

Nasscom has consistently advocated for stable and predictable frameworks for skilled talent mobility, calling them critical for sustaining national competitiveness. Such frameworks, the body said, have long fuelled US innovation and economic growth. It added that skilled mobility will remain central to enabling businesses to make forward-looking investments, accelerate research, and strengthen the position of nations in the global innovation economy.