CHENNAI/NEW DELHI: The Trump administration on Saturday imposed a fee of $100,000 per year on each H-1B visa holder, dealing a body blow to the 2,83,397 (71%) skilled technology workers from India, as per 2024 data. At 71%, India was the largest beneficiary of the H-1B visa program last year, while China was a distant second at 12%.
“We need great workers, and this pretty much ensures that that’s what’s going to happen,” Trump said at the Oval Office as Commerce Secretary Howard Lutnick stood by.
The new rule would raise the cost of sponsoring an Indian H-1B worker from the current $215 to a staggering $100,000 per year or up to $600,000 over a six-year visa period. The Trump administration says the fee is designed to ensure that only “extraordinary” workers are let in.
TCS accounted for over 5,505 H-1B visas granted for fiscal year 2025 (October 2024-September 2025), followed by Cognizant (3,700), Infosys (2,004), LTIMindtree (1,807), and HCL Tech (1,728). In 2025, TCS was the second-largest recipient of H-1B visas after Amazon, which received approvals for 10,000.
Pew Research notes that since 2010, a majority of H-1B approvals each year went to workers born in India. It added that since fiscal 2012, about 60% or more of H-1B workers approved each year held computer-related jobs. In 2023, the share was 65%, with these workers reporting a median annual salary of $1,23,600.
Nasscom, the apex body of India’s technology industry, said the steep increase in H-1B visa fees will have a ripple effect on America’s innovation ecosystem and the job market. “It will also impact Indian nationals working in the US on H-1B visas for both global and Indian companies. India’s technology services companies will face business continuity challenges for onshore projects,” it said.
Nasscom also flagged the timeline for implementation as a major concern, since the new rules apply to anyone entering the US after 12.01 am on September 21. “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods,” it added.
IT services exports to the US generate around $100 billion in revenue for India, and Trump’s latest move could disrupt this (see box). Although Indian IT firms have increased local hiring in the US, the revised visa fee is expected to have a short-term impact. Some companies may even consider recalling employees to India.
Another concern is wage pressure in India’s IT industry if employees return. Yogeesha Channabasappa, an IT consultant, said, “With more people competing for India-based roles, wage growth may flatten in the short run.”
Karanth further says in the near-term, it will increase deployment costs for the companies, while in long-term there will be shift from traditional outsourced services to alternate routes like hiring in GCCs.
Although the announcement came after Indian markets had closed, it jolted Infosys’ American Depository Receipts (ADRs), which fell 3.41% to $16.97 on the New York Stock Exchange. Wipro’s ADRs declined 2.10%. Analysts expect the ripple effect to spill over when Indian markets open on Monday.
Though Indians still account for nearly three-fourths of all H-1B visas, Indian IT firms have been steadily reducing their dependence on the programme. CP Gurnani, co-founder and vice-chairman of AIonOS (a joint venture between InterGlobe Enterprises and Assago Ventures), said: "Over the past several years, Indian IT firms have significantly reduced their reliance on the H-1B visa, with filings dropping by over 50%. This shift is a result of our ongoing strategy to hire more locally, invest in automation, and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we’ve already adapted to this evolving landscape."
Gurnani, who led Tech Mahindra until December 2023, noted that this shift is structural rather than temporary.
A study by Xpheno covering 18 companies, including two US-based firms, found that these companies collectively filed 36,453 H-1B applications in 2024, of which 35,871 were approved and 582 denied, translating to a 98.4% approval rate. In 2025 so far, applications have dropped to just over 7,000, with more than 6,800 approvals and over 200 denials—an approval rate of around 97%.
Aditya Narayan Mishra, CEO of CIEL HR, said: "Over the last decade, the Indian IT industry has adapted to H-1B restrictions by embracing local and nearshore hiring. Their business model has evolved to pass on the cost impact of deploying talent from India and onshore locations. This time too, if the $100k charges are applied, the industry will adapt quickly."
He added that the real test will be whether the new fees are challenged in US courts: “This will impact the US economy, and if contested, the implementation could be stalled.”
Top H1-B beneficiaries in 2025 (IT firms)
TCS: 5,005
Cognizant: 3,660
Infosys: 2,004
LTIMindtree: 1,807
HCL: 1,728
Wipro: 1,523
US revenue for major Indian IT cos (% of US revenue)
TCS: 48%
Infosys: 58%
HCL Tech: 66%
Wipro: 63%
Tech Mahindra: 51%