CHENNAI: The US administration’s decision to sharply increase annual fees for H-1B visas is set to affect a significant portion of Indian professionals working in America’s technology and STEM sectors. While the absolute numbers are large, industry data shows the impact is concentrated in a relatively small but critical segment of India’s IT workforce.
According to the latest US Citizenship and Immigration Services (USCIS) data, 386,318 H-1B petitions were approved in FY2023. Of these, nearly 72% were for Indian nationals, translating into about 278,000 approvals. Computer-related occupations made up the largest category, accounting for 65% of approvals, or roughly 180,000 Indian professionals.
When compared against India’s IT and business process management (BPM) workforce of around 5.4 million, the numbers suggest that about 3.3% to 5.2% of the country’s IT talent pool is directly represented among H-1B visa holders, according to USCIS.
Although this is a relatively small percentage, it includes highly skilled engineers, project leaders, and domain experts who play pivotal roles in US technology and research teams.
Industry analysts warn that the fee hike could discourage US employers from sponsoring new visas or renewing existing ones. This may push companies to look for alternatives, such as increasing offshore delivery from India, investing in local US hiring, or accelerating adoption of remote work models.
Beyond IT, the policy will also affect Indian professionals in science, mathematics, and engineering fields, though their share of H-1B approvals is much smaller compared to computer occupations. The broader concern for India is not mass job losses at home but rather the reduced mobility and career opportunities for STEM professionals aspiring to work in the United States.
Experts also caution that the final impact depends on how the policy is implemented — whether it applies only to new petitions or also to renewals, and whether any exemptions are provided. Legal challenges and lobbying from the tech industry are also expected, which could delay or modify the rollout.
In sum, the policy may directly affect only a few percent of India’s IT workforce, but the consequences could be disproportionate. With hundreds of thousands of Indian professionals on H-1B visas, the fee hike risks reshaping hiring strategies, cross-border project execution, and the global flow of high-skilled talent.