**Nasscom Evaluates Impact of Proposed $100,000 Annual Fee on H-1B Visas**

*By Dwaipayan Roy | Sep 20, 2025, 04:21 PM*

Nasscom, a major player in the Indian tech industry, is closely assessing the potential consequences of US President Donald Trump’s recent proclamation to impose an annual fee of $100,000 (approximately ₹88 lakh) on H-1B visas. This move could have significant effects on both Indian technology companies and US firms employing Indian professionals.

### Understanding the H-1B Visa

H-1B visas are non-immigrant permits that allow US companies to hire foreign workers in specialized fields such as science, technology, engineering, mathematics (STEM), and IT. The Indian government is actively examining the implications of Trump’s decision. A senior official told *Moneycontrol* that New Delhi is consulting with Nasscom and the Indian Embassy in Washington regarding this matter.

### Assessing the Impact

The official noted that the proposed fees will affect US technology companies more profoundly, as they heavily rely on Indian professionals for specialized roles. However, there is a possible silver lining: the move might drive a rise in global capability centers (GCCs) in India and elsewhere to address talent shortages.

The Indian government also anticipates legal challenges against the proclamation in the US, citing its broad impact on both employers and foreign workers.

### Strategic Shift in Hiring Practices

Over recent years, Indian IT companies have strategically reduced their dependence on H-1B visas by increasing local hiring within the US. Data from the National Foundation for American Policy (NFAP) shows that approved H-1B petitions for initial employment from India’s top seven IT companies dropped by 56% between fiscal years 2015 and 2023.

### Details of the Proclamation

In his presidential proclamation, Trump stated that the new rule would come into effect from September 21 and last for 12 months, after which it will expire unless extended. He alleged there is “systemic abuse” of the H-1B visa system by IT outsourcing firms and declared it a “national security threat.”

These new rules are expected to make hiring foreign talent, especially from India, substantially more challenging for US technology firms.

### Uncertain Future for Indian Tech Workers

Sophie Alcorn, an immigration lawyer, explained that while the proposed fee may not force immediate returns, it will limit job mobility and increase the costs of visa renewals for thousands of Indian tech workers. Employers might hesitate to sponsor or retain H-1B employees, particularly early-career professionals.

This could increase the likelihood of many workers returning to India or relocating to other countries such as Canada, the UK, UAE, and Saudi Arabia.

—

The implications of this proclamation continue to unfold, with Nasscom and the Indian government closely monitoring the developments and preparing to respond accordingly.
https://www.newsbytesapp.com/news/business/nasscom-assessing-impact-of-trump-s-100-000-h-1b-visa-fee/story