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Increased H-1B visa fee to have marginal impact on IT sector: Nasscom

Nasscom highlights that for the top 10 Indian and India-centric firms, H-1B workers constitute less than 1% of their total employee base, leading the organisation to anticipate only a marginal impact on the sector.

ENS Economic Bureau

New Delhi: IT industry body Nasscom has said that the revised H-1B visa fee will have a marginal impact on the sector, given the fact that Indian and India-centric companies have been steadily reducing their dependence on H-1B visas.

In a statement issued on Monday, the industry body said that the number of H-1B visas issued to leading companies in this category decreased from 14,792 in 2015 to 10,162 in 2024.

Nasscom highlights that for the top 10 Indian and India-centric firms, H-1B workers constitute less than 1% of their total employee base, leading the organisation to anticipate only a marginal impact on the sector.

It also welcomed the recent clarification from the White House in which clarifies that the $100,000 fee is a one-time charge applicable only to fresh petitions and will not affect current visa holders or those seeking renewals.

“The clarification, issued on September 20, 2025, makes it clear that the fee is a one-time charge applicable only to fresh petitions and will not affect current visa holders or those seeking renewals. This has helped to resolve the immediate confusion and uncertainty that followed the initial announcement of the fee,” it said in the statement.

The clarification also specified that the fee will be applicable from 2026 onwards, giving companies crucial time to adjust their strategies.

According to Nasscom, the Indian IT industry body, this timeline will allow companies to further ramp up their local skilling and hiring initiatives in the US. The industry is already spending over a billion dollars on these programs, and the number of local hires has been increasing substantially.

Nasscom reiterated its long-standing stance that predictable and stable skilled talent mobility frameworks are vital for sustaining national competitiveness and fueling innovation and economic growth in the US.

The organisation views H-1B visas as a non-immigrant visa that helps bridge critical skills gaps, with H-1B workers' salaries being on par with local hires.

This latest clarification is a welcome step toward easing disruptions and promoting a framework that benefits both the US and Indian tech ecosystems.

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