India’s prominent industry body, Nasscom, announced on Saturday, September 20, 2025, that the United States’ recent move to escalate H-1B visa application fees to an astonishing $100,000 is set to severely impact India’s technology services sector. This significant change could disrupt business continuity for onshore projects requiring immediate adjustments.
Adding to the industry’s alarm, Nasscom highlighted major concerns regarding the swift implementation timeline, noting that the September 21 deadline for this policy creates immense uncertainty for businesses, professionals, and students worldwide.
The organization emphasized that this U.S. policy will directly affect Indian nationals holding H-1B visas who are employed by both global and Indian companies.
Nasscom further stated, “While we are meticulously reviewing the detailed aspects of this order, adjustments of such magnitude have the potential to trigger widespread ripple effects across America’s innovation landscape and the broader job market.”
Indian technology services companies anticipate challenges, with business continuity for crucial onshore projects potentially requiring unforeseen adjustments. Companies are preparing to collaborate closely with their clients to navigate these transitions effectively.
Nasscom pointed out that India and India-centric companies have actively reduced their reliance on these visas over recent years by increasing local hiring within the U.S. The body also affirmed that these companies rigorously adhere to all necessary governance and compliance standards in the U.S. for H-1B processes, ensuring fair wages and contributing positively to the local economy and fostering innovation through partnerships with academia and startups.
Nasscom firmly asserted that H-1B workers from these companies pose no threat to U.S. national security.
“The timeline for implementation, specifically targeting anyone entering the U.S. after 12:01 a.m. on September 21, is particularly troubling. A mere one-day deadline creates substantial uncertainty for businesses, professionals, and students across the globe,” Nasscom reiterated.
The industry body stressed that policy changes of this scale ideally require adequate transition periods, allowing organizations and individuals ample time to plan effectively and minimize disruption.
Nasscom has consistently underscored the critical role of high-skill talent in fostering innovation, competitiveness, and economic growth for the American economy. This is especially vital in an era where advancements in AI and other cutting-edge technologies are shaping global competitiveness. High-skill talent remains fundamental to maintaining America’s leadership in innovation and its long-term economic strength.
“As these developments unfold, we commit to closely monitoring the situation, engaging with industry stakeholders to assess potential implications, and seeking further clarification on the discretionary waiver process to be administered by the Secretary of DHS,” Nasscom concluded.
U.S. President Donald Trump signed a proclamation on Friday, September 19, 2025, which will elevate the H-1B visa fee to a steep $100,000 annually. Previously, H-1B visa fees typically ranged from approximately $2,000 to $5,000, depending on factors like employer size and other associated costs.
Indian tech professionals are among the primary beneficiaries of the U.S. H-1B visa program, which is designed to attract top talent and expertise globally. Each year, Congress mandates a pool of 65,000 such visas, with an additional 20,000 visas reserved for those who have earned advanced degrees in the U.S.
Data from the USCIS website for FY25 (as of June 30, 2025) reveals that Amazon led the list of H-1B visa approvals with 10,044. Other top beneficiaries include TCS (5,505), Microsoft Corp (5,189), Meta (5,123), Apple (4,202), Google (4,181), Cognizant (2,493), JP Morgan Chase (2,440), Walmart (2,390), and Deloitte Consulting (2,353). The top 20 list also featured Infosys (2,004), LTIMindtree (1,807), and HCL America (1,728).
This significant visa fee increase hits at a challenging time for India’s $283 billion IT sector, which is already navigating a turbulent global business landscape. The sector faces delays in client decision-making amid macroeconomic uncertainties, ongoing tariffs and trade wars, evolving geopolitical tensions, and the transformative influence of AI.
Further exacerbating concerns is the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno. If passed, this legislation would curb outsourcing and promote domestic employment by imposing a 25% levy on payments made by American companies to foreign workers for services ultimately benefiting U.S. consumers.