New Delhi: In a move that has rattled the global tech sector, the US government has hiked the annual H-1B visa fee to US$100,000, covering both fresh applications and renewals. While industry experts caution that the sharp increase could disrupt India’s IT-BPM workforce and limit opportunities for professionals abroad, Amitabh Kant, former G20 Sherpa and ex-CEO of NITI Aayog, believes the policy could turn into a long-term advantage for India.
Industry Warnings
Analysts said the fee hike will force US employers to reassess the cost of hiring skilled Indian professionals. Many predict companies may cut back on sponsoring new visas, hesitate on renewals, or move work offshore instead of stationing staff in the U.S.
According to data, nearly 72% of H-1B approvals in FY 2023 went to Indian nationals—about 278,000 workers, most of them in IT. Though this represents just 3.3% to 5.2% of India’s 5.4-million-strong IT-BPM workforce, experts note that the group is disproportionately composed of project leaders, domain specialists, and senior engineers. “This is the layer of talent that drives high-end delivery,” one sector insider warned, suggesting the ripple effect could reach far beyond the numbers.
Concerns also extend to U.S. businesses. Rising costs could deter employers from sponsoring overseas talent, prompting some to hire more locally, while others might accelerate remote and offshore delivery models.
Kant’s Perspective
Offering a different view, Amitabh Kant called the US move short-sighted and argued it could redirect global talent flows toward India. He said that America risks losing its edge in innovation, with labs, startups, and R&D hubs potentially relocating to Indian cities such as Bengaluru, Hyderabad, Pune, and Gurugram.
“America’s loss will be India’s gain,” Kant remarked, pointing out that India has the infrastructure and skilled workforce to absorb the shift. He stressed that the new visa fee would make it more viable for global firms and innovators to build capacity in India rather than bear prohibitive costs in the US.
What did Nasscom say?
The H-1B visa fee hike will disrupt the US business of Indian IT companies, industry body Nasscom said on Saturday. “India’s IT companies will be impacted as business continuity will be disrupted for onshore projects and additional cost will require adjustments,” Nasscom said in a statement, reported the Hindustan Times. “Companies will work closely with clients to adapt and manage transitions,” it stated.
“However, it is also important to note that India and India centric companies have been steadily reducing their reliance on these visas through increased local hiring in recent years,” it added.
According to a Hindustan Times report, these companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups.
“The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom said.
What Lies Ahead
The ultimate impact of the fee hike will depend on how US companies adapt—whether by scaling back H-1B hiring, expanding offshore teams in India, or contesting the policy. For India, the move presents both challenges and potential: fewer overseas career pathways for its professionals, but also a possible boost to its domestic innovation and IT ecosystem if companies and talent pivot homeward.
