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

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

Nasscom, a major player in the Indian tech industry, is assessing the potential consequences of US President Donald Trump’s proclamation to impose an annual fee of $100,000 (approximately ₹88 lakh) on H-1B visas. This move could significantly affect Indian technology companies as well as US firms that employ Indian professionals.

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### Understanding the H-1B Visa and Government Response

H-1B visas are non-immigrant permits that enable 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.

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### Assessing the Impact and Anticipating Legal Challenges

According to the official, while the new costs are likely to burden US technology companies more — especially those relying on Indian professionals for specialized roles — there could be a silver lining. The decision may encourage the growth of global capability centers (GCCs) to help address talent shortages.

The government also expects legal challenges against the proclamation in the US due to its broad impact on employers and foreign workers alike.

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### Strategic Shifts in IT Firms: Reducing Reliance on H-1B Visas

Over the years, Indian IT companies have strategically decreased their dependence on H-1B visas by increasing local hiring in the United States.

Data from the National Foundation for American Policy (NFAP) reveals that approved H-1B petitions for initial employment from India’s top seven IT firms fell by 56% between FY15 and FY23.

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### Details of the Presidential Proclamation

In his proclamation, Trump stated that the new rule would take effect from September 21 for a duration of 12 months, after which it will expire unless extended.

He alleged “systemic abuse” of the H-1B visa system by IT outsourcing firms and labeled it a “national security threat.” These rules are likely to make hiring foreign talent, particularly from India, more challenging for US tech companies.

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### Uncertain Future for Indian Tech Workers

Sophie Alcorn, an immigration lawyer, explained that while the proposed fee won’t force immediate returns of H-1B employees, it will limit job mobility and make visa renewals expensive for thousands of Indian tech workers.

Moreover, employers may hesitate to sponsor or retain H-1B employees, especially early-career professionals. This could increase the likelihood of some workers returning to India or relocating to other countries such as Canada, the UK, UAE, or Saudi Arabia.

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The proposed fee and associated challenges mark a significant turning point for Indian professionals and the technology sector’s Indo-US workforce dynamics. Stakeholders continue to monitor developments closely.
https://www.newsbytesapp.com/news/business/nasscom-assessing-impact-of-trump-s-100-000-h-1b-visa-fee/story