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

**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 effects of US President Donald Trump’s recent proclamation to impose an annual fee of $100,000 (around ₹88 lakh) on H-1B visas. This move could significantly impact both Indian technology companies and US firms that employ 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 currently 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.

**Impact Assessment and Expected Legal Challenges**

The official noted that the new costs would primarily affect US technology companies, which rely heavily on Indian professionals for specialized roles. However, there could be a silver lining: the official suggested this development might lead to an increase in global capability centers (GCCs) as companies seek to address talent shortages.

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

**Strategic Shift: Reduced Reliance on H-1B Visas**

Over the 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) reveals that approved H-1B petitions for initial employment from India’s top seven IT firms fell by 56% between FY15 and FY23.

**Details of the Proclamation**

In his presidential proclamation, Trump stated that the new rule would take effect from September 21 for a duration of 12 months. After that, 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 new regulations are expected to make hiring foreign talent, especially from India, more difficult for US technology companies.

**Uncertain Future for Indian Tech Workers**

Sophie Alcorn, an immigration lawyer, commented that while the proposed fee may not force immediate returns, it will limit job mobility and make visa renewals costly for thousands of Indian tech workers. Employers might hesitate to sponsor or retain H-1B employees, particularly early-career professionals. This could increase the risk of some workers having to return to India or relocate to other countries such as Canada, the UK, UAE, or Saudi Arabia.

As the situation evolves, the Indian tech industry and government continue to monitor developments closely to mitigate the impact on professionals and businesses.
https://www.newsbytesapp.com/news/business/nasscom-assessing-impact-of-trump-s-100-000-h-1b-visa-fee/story