Indian IT faces $100,000 H-1B shock, but innovation may be the answer

Visa fee hike poses a major challenge for the industry, but it is also an opportunity for cash-rich firms to rethink their model

The Trump administration has massively hiked the one-time H-1B visa fee to $100,000 for new applicants, which previously ranged from $2,000 to $5,000, depending on the size of the company applying for the visa. It will significantly impact Indian information technology (IT) companies, which rely heavily on these visas for on-site professionals to execute projects.  H-1B visa was introduced to fill skill gaps in the United States workforce.

 

Impact on the Indian economy

 

Indian IT and IT-enabled services (ITes) have boomed, growing at a compound annual growth rate of 12.1 per cent over the last 30 years, with the US