The recent move by US President Donald Trump to impose a $100,000 annual fee on H-1B visas has sent shockwaves through the Indian IT industry. The announcement comes against the backdrop of an already uncertain macroeconomic climate, worsened by recent tariff hikes. United States Citizenship and Immigration Services (USCIS) data show that Indian firms dominate H-1B usage. Between FY09 and FY25, TCS accounted for 98,259 visas, Cognizant for 92,435, Infosys for 87,654 and Wipro for 77,289 -- placing them among the top beneficiaries of the program. The proposal could also have implications in the following 10 areas: 1. Increased cost of hiring foreign talent A few weeks ago, the Trump administration unveiled the HIRE Act to boost US jobs by taxing companies that favour foreign labour over American workers. Coupled with the $100,000 H-1B fee proposal, this makes sponsoring H-1B workers viable mainly for senior or highly specialised roles. Companies could see profitability pressures, as hiring in the US is significantly more expensive than in countries like India. 2. Pressure on Indian IT services USCIS data shows that even in FY25, TCS, Infosys and Wipro continue to dominate among IT firms with the largest H-1B usage. TCS led with 5,505 visas, followed by Cognizant at 2,493, Infosys at 2,004 and Wipro at 1,523. While Indian IT is gradually reducing its reliance on H-1B talent, the proposed fee, combined with an uncertain economic environment, could erode profitability and prompt cost-cutting measures or shifts in business models. 3. Global tech giants affected US companies such as Microsoft, Amazon, Google and Apple will also face significant increases in operating costs due to H-1B sponsorship. In FY25, Amazon led with 10,044 applications, followed by Microsoft at 5,189, Meta at 5,123, Apple at 4,202 and Google at 4,181. 4. Ripples across other sectors Beyond IT, sectors such as e-commerce, banking and financial services (BFSI), automotive and healthcare will also feel the impact, as they rank among the top 100 beneficiaries of the H-1B program. 5. Uncertainty for H-4 dependents The H-4 visa is issued to dependents -- spouses and unmarried children of certain nonimmigrant workers, allowing them to live in the US for the duration of the primary visa holder’s authorised stay. H-4 visa holders can also pursue studies and, in some cases, apply for work authorisation. However, the proposed H-1B fee increase could indirectly affect them as well. 6. Pressure on international students The F-1 visa allows individuals to enter the US as full-time students. To obtain an H-1B visa, F-1 holders must secure a job offer from a US employer willing to sponsor them. Employers then register candidates for the annual H-1B lottery, and if selected, file a petition. With the proposed H-1B fee increase, F-1 students may face fewer sponsorship opportunities, limiting post-graduation career prospects in the US. 7. Stock market reaction Stocks of both Indian IT and global companies could face the heat as investors anticipate margin squeezes and weaker US growth prospects. 8. Offshoring and remote work acceleration However, all is not lost for India’s talent market. Companies may increasingly move roles offshore or adopt remote-first hiring to bypass high visa costs, creating opportunities for India, which is emerging as a global hub for outsourced operations, including from GCC countries. 9. Global talent realignment Skilled professionals or emerging talent may increasingly look towards other geographies like Canada, the UK, Germany, or Gulf countries, where immigration pathways are less costly. 10. Restricting H-1B talent may hit US tech leadership
Historically, many leaders of global tech giants, including Google, Microsoft, Adobe, and IBM, have held H-1B visas, and restrictions on foreign talent could affect the country’s competitiveness.
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Published on September 20, 2025
