Urgent: H-1B Visa Fee Soars to $100,000—What This Means for Indian Tech Companies and Why the 1-Day Deadline is Worrying, Says NASSCOM

New Delhi:

Nasscom, an industry body, recently raised alarms about the US increasing the H-1B visa application fee to a staggering $100,000. This move affects Indian tech companies, which might face disruptions in managing onshore projects.

The quick implementation deadline of September 21 adds to the uncertainty. Nasscom noted that this sudden change impacts many professionals and students globally, leading to anxiety around business operations.

While assessing the implications of this fee hike, Nasscom highlighted that such adjustments can create ripples in America’s innovation landscape and job market. Indian tech firms have increasingly relied on local hiring, reducing their dependence on H-1B visas in recent years. They adhere to US regulations, paying appropriate wages and contributing to local economies and collaborations with educational institutions.

Nasscom emphasized that the one-day deadline doesn’t give companies enough time to adapt. It’s crucial for policy changes of this magnitude to include transition periods, ensuring businesses and individuals can adjust smoothly.

This issue is especially pressing as the demand for high-skilled talent grows amid advances in AI and other technologies. These skilled workers support America’s competitiveness and economic growth.

Nasscom is actively monitoring these developments and working with industry stakeholders to understand the ramifications of this decision better.

Former President Donald Trump introduced this fee hike, previously ranging from $2,000 to $5,000 depending on various factors. Indian professionals are among the primary beneficiaries of the H-1B visa program, which allows 650,000 visas yearly, with an additional 20,000 for those with US advanced degrees.

Recent statistics reveal that Amazon led H-1B visa approvals for FY25 with 10,044 applications. Close contenders include Tata Consultancy Services (5,505) and Microsoft (5,189). Notably, the $283 billion Indian IT sector is already facing challenges due to shifting market dynamics, geopolitical tensions, and advancements in AI technology.

Additionally, proposed legislation like the Halting International Relocation of Employment (HIRE) Act may impose a 25% tax on payments to foreign workers, further complicating the landscape for outsourcing.

In summary, the H-1B visa fee increase poses significant challenges for India’s tech sector, but the ongoing evolution underscores the critical need for skilled talent to maintain innovation and competitiveness. A balance must be struck to ensure the growth of both US and Indian economies.



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