A proposed $103,265 H-1B fee in the US could slow Indian IT hiring, while pushing American firms towards offshoring and intensifying global competition for Indian tech talent.
The proposed fee, up from the current $2,000-10,000 cost per petition, is expected to affect on-site hiring by Indian IT firms and could encourage US enterprises to shift more work offshore. The proposal would apply to all new H-1B petitions and is open for public comment for 30 days.
The US administration says the fee would cover immigration processing costs and encourage employers to hire and train American workers rather than rely on foreign labour.
India is the biggest beneficiary of the H-1B programme, accounting for more than 70% of visa holders, according to the US Citizenship and Immigration Services. In FY2025, Indians received 2.83 lakh H-1B visas, nearly 70% of the total issued.
The proposal comes as Indian IT companies have reduced their reliance on H-1B visas over the past five years. Nasscom said companies have expanded local hiring in the US while investing $1.1 billion to strengthen the local science, technology, engineering and maths talent base.
The industry body said the investments include work with 130 US universities and colleges. The programmes have reached 2.9 million students and upskilled more than 255,000 employees.
Nasscom said the H-1B programme was created to provide access to temporary skills where there are shortages in the US. “The proposed increase in visa fees must therefore be viewed in the context of the US agency’s original purpose of enabling access to temporary skills where there is a shortage in the US.”
The fee could affect companies that continue to use H-1B visas for US-based roles. TCS secured 4,450 H-1B approvals for FY26, down from 6,126 in FY25. Infosys secured 4,113 approvals in FY26, compared with 2,856 in FY25.
Nick Catino, Global Head of Policy at Deel, said the change could increase competition for Indian technology professionals in other markets.
“The H-1B fee increase has particular implications for India, which comprises the majority of H-1B holders. It reflects a broader shift toward more selective immigration in the US. But while the US is raising barriers, other governments are actively competing for the same talent. Our State of Global Hiring Report shows visa holders consistently out-earn local workers across nearly every market, so this isn't about cost cutting, it's about accessing the best talent. As the US becomes more restrictive, the competition for Indian tech professionals is intensifying elsewhere.”
The US has increased scrutiny of skilled-worker visas over the past year. In September 2025, the administration introduced a $100,000 fee for new H-1B petitions for one year, but a US federal court blocked it. The administration has also increased scrutiny of green-card processing.
