Why Indian IT firms are worried, but not much, about US H-1B visa fee hike

Indian IT companies, some of the biggest providers of software services to American businesses, are watching closely as the US government moves to sharply increase the fees for H-1B work visas. The announcement briefly dragged down IT stock prices, but industry experts say the worry is limited — because the industry today relies far less on these visas than it once did.

The move has drawn criticism even from within America. US President Donald Trump’s proclamation imposing a $100,000 fee on H-1B visas has been described as “reckless”. A leadering community organisation said the move is not about protecting American jobs but about “weaponising” immigration policy to advance a “xenophobic agenda”.

The Trump administration announced a one-time $1,00,000 fee on H-1B visas on Friday last week.

Indian American Impact has strongly condemned the order, saying its “chaotic” rollout sparked panic and chaos—especially for professionals abroad working or visiting family with medical emergencies.

The proclamation “is not about protecting American jobs; it is about weaponising immigration policy to advance a xenophobic agenda. holders, Trump is both sabotaging our economic future and fuelling discrimination against Indian Americans and all immigrant communities across the country,” Executive Director of Indian American Impact Chintan Patel said in a statement.

The Indian IT firms, however, don’t seem to be worried in the long term.

A shrinking need for H-1B visas

H-1B visas allow skilled foreign workers, often from India, to work in the US. A decade ago, India’s top tech firms depended heavily on them to send engineers to American client sites. But the numbers tell a different story now.

In 2015, leading Indian IT companies were issued nearly 14,800 H-1B visas. By 2024, that figure had fallen to just over 10,000. Today, H-1B workers make up less than one per cent of the total workforce at the top ten Indian IT firms.

This decline shows how the industry has changed. Instead of flying in staff from India, companies have been steadily increasing local hiring within the US.

Investments in American jobs

Nasscom, the industry’s lobby group, points out that Indian IT firms have spent over $1 billion in recent years on hiring and training workers in the US. They have partnered with local universities, set up training centres, and hired thousands of American workers.

This means that even as visa costs go up in 2026, companies will have time to further expand these local programmes, reducing any impact on their business.

How markets and analysts see it

Brokerage reports note that the immediate drop in IT stock prices was more of a knee-jerk reaction. Since Indian firms now depend much less on H-1Bs, the cost increase will only nudge overall expenses rather than cause serious damage.

Analysts also point out that demand for IT services remains strong, fuelled by cloud adoption, digital transformation projects, and the push for artificial intelligence solutions. This ensures that even if visa costs rise, Indian IT firms will remain key players in serving American clients.

A key pillar of India’s economy

India’s tech sector is crucial at home too, contributing around 7.3 per cent of the nation’s GDP and employing millions. Experts say the sector has lived through many phases of US immigration policy changes in the past, and each time, it has adapted by reshaping its global workforce strategy.

In short, while the new H-1B visa fee hike may create some ripples, Indian IT firms have already insulated themselves from the shock. The message from the industry is clear: business will go on as usual, with more jobs being created in both India and the United States.