India’s apex IT industry body Nasscom has voiced concern over the US administration’s decision to hike the H-1B visa application fee to an unprecedented $100,000, cautioning that the move could disrupt business continuity, unsettle professionals and students, and ripple across America’s innovation ecosystem.
The new fee will apply from September 21, leaving companies and individuals with virtually no transition period.
Late on Saturday night, Indian time, a White House official clarified that this policy change applies to only new visa applicants as a one-time fee, applicable only to new visas and not renewals or current visa holders, news agency IANS said.
Nasscom said that policy changes of such scale should come with phased implementation to allow organisations to plan and minimise disruptions.
Nasscom said the decision would directly impact Indian nationals employed on H-1B visas with both global and Indian firms. “Adjustments of this nature can potentially have ripple effects on America’s innovation ecosystem and the wider job economy,” the body said, adding that Indian IT companies will now work closely with clients to manage project transitions.
The industry body pointed out that India-centric firms have, in recent years, reduced dependence on H-1B visas by stepping up local hiring in the US. These companies, it said, follow governance norms, pay prevailing wages, and contribute to local economies through innovation partnerships with universities and startups. It also rejected the notion that H-1B workers pose a security risk, arguing instead that they play a central role in sustaining America’s competitiveness in emerging technologies like artificial intelligence.
“High-skill talent is vital to driving innovation and growth for America’s economy. This is especially critical as frontier technologies are set to define global competitiveness,” Nasscom noted.
Echoing similar concerns, former NITI Aayog CEO Amitabh Kant said the steep fee would choke US innovation while boosting India’s startup ecosystem. “By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore, Hyderabad, Pune and Gurgaon,” Kant said on X, adding that India’s best minds will find greater opportunity at home.
Former Infosys CFO and industry veteran Mohandas Pai told PTI that the $100,000 fee could dampen fresh H-1B applications and accelerate offshoring. He rejected claims of cheap labour imports, noting that the top 20 H-1B employers pay average salaries above $100,000, calling the debate a “misplaced rhetoric.”