H-1B Visa Fee Hike: Indian IT Careers and Companies Face a Reality Check

The H-1B visa programme has long been a key route for skilled Indian professionals seeking opportunities in the US, particularly in technology and engineering. On September 19, 2025, the US administration announced a sharp increase in the H-1B visa fee to USD 100,000 (~₹83 lakh), a move that is expected to change the way Indian IT companies plan their workforce in the US.

The H-1B visa allows US employers to hire foreign professionals for specialised roles requiring at least a bachelor's degree. Valid for three years and renewable once (up to six years), it has been a cornerstone for Indian talent in the US tech ecosystem.

Historically, Indian nationals have dominated H-1B approvals, receiving over 70% of petitions annually. In the period October 2022 - September 2023, Indians accounted for 72% of nearly 400,000 visas granted, while Chinese nationals made up around 11%.

Existing Cost Structure vs. New Fee

The new USD 100,000 fee (~₹83 lakh) is massive compared to previous costs, effectively making H-1B sponsorship a strategic business decision rather than a routine HR process.

Who Will Stay Back and Who Might Return to India?

The fee increase prioritises high-salary roles. Here's how it may affect Indian professionals:

Likely to stay in the US: Professionals with high-paying jobs (above median salaries of $120,000, ~₹1 crore) or critical specialised skills in AI, cloud computing, cybersecurity, or leadership roles may justify the high visa cost for employers. They are likely to remain, provided their companies absorb or pass on the fee.

Likely to return to India: Early-career professionals, entry-level IT staff, or those in outsourcing roles earning $80,000-$100,000 (~₹66-83 lakh) may be deemed too costly under the new fee regime. Many may be sent back or offered positions in Indian offices instead of the US.

Impact on Indian IT Companies

Indian IT giants such as TCS, Infosys, Wipro, and HCL have historically relied heavily on H-1B employees. In FY2023 alone, approvals for Indian IT employees numbered around 20,000.

Revenue Exposure: Indian IT firms derive ~55% of revenue from the US; mid-cap players like LTI Mindtree and Mphasis have even higher exposure (75-80%).

Margin Pressure: Analysts suggest the USD 100,000 fee could reduce EBIT per H-1B employee by 50-150 basis points, potentially impacting profitability.

Stock Reactions: After the announcement, IT stocks like TCS, Infosys, and Wipro fell around 2% each.

How Indian IT Companies Are Adapting

• Indian IT companies are likely to adopt several mitigation strategies:
• Increase local US hiring: Prioritising American talent for cost-effective staffing.
• Use L1 visas and offshore teams: Leveraging internal transfers and work from Indian offices.
• Near-shoring: Moving operations to Canada or Latin America for timezone alignment.
• Cost escalation in client contracts: Sharing visa costs with clients to maintain margins.
• Reduce reliance on new H-1B visas: Existing H-1B employees already in the US are unaffected until renewal.

The fee is one-time per filing, not annual, meaning a company paying $100,000 (~₹83 lakh) covers the employee for the entire 6-year visa cycle. Legal challenges and administrative delays may also provide temporary relief for firms.

The USD 100,000 H-1B fee is a game-changer for Indian IT professionals and companies. While high-earning, critical professionals are likely to remain in the US, many early-career employees may return to India, prompting IT firms to rethink workforce strategies.

For Indian IT companies, the focus will shift to local hiring, offshore delivery, and strategic cost management. Though the immediate outlook involves some pressure on margins and stock performance, the sector's resilience and past preparation for H-1B policy changes suggest that India's IT industry can navigate these challenges effectively.