Indian IT giants like TCS, Infosys, and Wipro could face soaring costs as the US revamps its H-1B system, raising barriers for thousands of skilled Indian workers.
BY PC Bureau
New Delhi, September 20, 2025: – A sweeping change to the United States’ H-1B visa programme has sent ripples across India, home to the largest share of beneficiaries of the skilled worker route. On Friday (US time), the US President signed a proclamation introducing a $100,000 annual fee for H-1B visa applications, alongside other reforms aimed at curbing alleged abuse of the system and protecting American jobs.
Indians dominate H-1B visas
For India, the stakes could not be higher. Indians have consistently been the largest group of H-1B visa holders. Between October 2022 and September 2023, 72.3% of all H-1B visas issued by the US went to Indians, according to data shared in Parliament earlier this year. In absolute terms, this translates into tens of thousands of Indian engineers, IT professionals, and STEM graduates securing jobs in the US every year.
Historically, the dominance has been even sharper. A US report showed that in 2018, out of roughly 419,600 H-1B workers, more than 310,000 were Indian nationals—nearly three-fourths of the total.
Indian IT firms also rely heavily on the programme. In the April–September 2024 period alone, 24,766 visas went to Indian-origin companies such as Infosys, Tata Consultancy Services (TCS), and HCL Technologies, accounting for about 15% of all approvals.
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The new financial burden
Until now, companies paid relatively modest sums: $215 for lottery registration and $780 for a Form I-129 petition. The new $100,000 annual fee marks a seismic shift. Analysts say this will hit smaller Indian firms and US start-ups hardest, as they may struggle to absorb such high upfront costs.
Critics argue the change will disproportionately affect Indian applicants, who form the bulk of the H-1B pool, while benefiting large US tech corporations that can afford to pay. “The policy virtually prices out smaller players while keeping the door open only for the wealthiest firms,” said an industry analyst in Bengaluru.
Impact on Indian IT and professionals
Indian outsourcing giants—Infosys, Wipro, TCS, HCL, and Cognizant—have long used H-1Bs to send engineers onsite to American clients. But the new cost structure could accelerate a trend already underway: reducing reliance on H-1B visas and expanding offshore delivery from India. For instance, Infosys recently cut its onsite US workforce share from ~30% to ~24%, signalling a structural shift in business models.
For Indian professionals, especially young engineers and STEM graduates hoping for US careers, the new fee may be discouraging. Junior-level jobs, which often went to H-1B holders at lower pay scales, may no longer be viable under the new rules. This could redirect many toward other countries with more open immigration policies—or encourage them to remain in India’s growing tech ecosystem.
🚨 Trump’s $100,000 H-1B fee bombshell 🚨
Donald Trump just announced a $100,000 fee on H-1B visas.
Target? Countries like India that send the highest number of skilled workers to the US.
📌 What it means:
Barrier to entry: Only companies with deep pockets can afford to send… pic.twitter.com/hGC7Y1qgTj
— Narayan Kulkarni (@narayankulkarni) September 20, 2025
READ: Analysis: Assam Rifles Ambush Bears Signature of Valley-based Outfits
Alternatives on the rise
The tougher H-1B regime has already spurred interest in alternatives. Indian uptake of the EB-5 investment visa—which grants US residency to those investing at least $800,000—has surged. In FY 2024, Indians received 1,428 EB-5 visas, nearly doubling from 815 the previous year.
Canada, the UK, and Australia have also emerged as attractive destinations for skilled Indian workers, given their comparatively friendlier visa regimes.
India’s official stance
The Indian government has acknowledged the centrality of H-1B visas to bilateral ties and said it is “closely engaged” with US authorities. Officials note that while reforms are aimed at curbing misuse, they must not unfairly penalise Indian professionals, who are key contributors to the American tech economy.
Industry bodies such as NASSCOM have previously argued that Indian talent helps address critical skill shortages in the US, particularly in STEM fields. They are expected to lobby both governments for a more balanced approach.
It’s Official 🚨
Trump signs proclamation to raise H1B Visa fee to a staggering $100KBad news for Indian IT people
Except FAANG no one can afford these we think
RIP H1B pic.twitter.com/2zDyzEdy8d
— narne kumar06 (@narne_kumar06) September 19, 2025
Broader implications
The US administration insists the overhaul will protect American workers by reducing dependence on underpaid foreign hires, prioritising high-wage and high-skill talent, and opening more entry-level opportunities for US graduates. But for India, the changes raise profound questions:
• Can Indian IT companies sustain their US market presence without heavy reliance on H-1Bs?
• Will Indian students continue to view the US as the top destination for higher education and work?
• Could this accelerate a reverse brain drain, benefiting India’s own tech sector?
For now, uncertainty looms. The US move fundamentally reshapes the economics of hiring Indian talent, with costs that may deter thousands of aspirants and force Indian IT firms to reconfigure strategies. While large players may adapt, smaller firms and individual professionals could face the steepest hurdles.
As one industry veteran in Hyderabad put it: “This is more than a visa fee hike—it’s a shift in how the US wants to source talent. For India, the challenge is to turn this disruption into an opportunity.”
Key Indian Statistics
Metric Latest Data & Sources
Share of H-1B visas held by Indians For the period October 2022 to September 2023, 72.3% of all H-1B visas issued by the US went to Indian nationals. www.ndtv.com+1
Dominance of Indian-origin tech firms in H-1B use In April-September 2024, out of ~130,000 H-1B visas issued, around 24,766 were for Indian-origin companies (Infosys, Tata Consultancy etc.). Outlook Business+1
Historic baseline As of 2018, ~419,600 people were on H-1B visas; ~310,000 of them were Indians (≈74%) at that snapshot. The Indian Express+1
Shifts in business model Some Indian companies are reducing reliance on onsite US H-1B workers. Example: Infosys dropped its proportion of onsite workforce in the US from ~30% to ~24%. The Financial Express+1
How the New Rules Could Impact Indian Stakeholders
1. Higher Cost Barrier
o The proposed $100,000 annual fee (versus the current smaller fees like registration & petition) will dramatically raise the cost of hiring H-1B holders.
o Small/medium Indian firms, and smaller US start-ups that contract Indian talent, may find this unaffordable.
2. Reduced Number of H-1B Applicants & Winners from India
o Given India’s large share of visas, many Indian applicants may be priced out or discouraged from applying.
o With only ~85,000 visas (cap), higher fees could reduce mass lottery entries, favouring only high wage/jobs or very large firms.
3. Shift to Alternative Channels / Immigration Paths
o More Indians may seek other US visa paths (student, EB-5 investment, etc.), or look to other countries with more favourable immigration regimes.
o The data already show increase in Indian interest in EB-5 visas. For example, in FY 2024 (Oct 2023-Sep 2024), 1,428 EB-5 visas were issued to Indians, up from 815 the previous year. The Indian Express
4. Business Model Adjustments by Indian Tech Firms
o Firms may reduce US onsite deployment, rely more on remote work or offshore delivery.
o Some already have started doing this (e.g. Infosys). The Financial Express+1
5. Potential Backlash & Diplomatic Engagement
o The Indian government has already taken note: in replies to Parliament, cited the high share of H-1Bs issued to Indians and said it is “closely engaged” with US authorities and stakeholders. www.ndtv.com
o Firms and industry bodies will likely lobby (in India & US) to moderate the fees or ensure carve-outs or exemptions for certain classes (students, start-ups, etc.).
6. Career Decisions of Students / Migrants
o Indian students planning U.S. education and job placement may reconsider if the job-via-H-1B path becomes much costlier or more restrictive.
o Some may prefer studying or working in other countries, or in India.
Possible Outcomes & Scenarios for India
• High-wage jobs preserved, junior roles hit hardest
Roles that can justify $100,000+/year compensation may still use H-1B; but many of the jobs many Indian professionals currently fill (often via consulting firms, entry/mid-level roles) might lose out.
• Reduced number of H-1B applications (or more selective applications)
Indian applicants may limit themselves to companies/firms that can absorb the higher cost; some may not apply at all.
• Acceleration of remittances & reverse brain drain?
If moving to the US becomes more difficult, more Indian talent may stay in India or in third countries, benefiting Indian tech ecosystems.
• Shift in Outsourcing & Offshoring Patterns
US companies may prefer having work done offshore by Indian firms rather than bringing people onsite under H-1B, especially if cost (visa fee + salaries) tilts too heavily against use of the visa.
What India Might Do in Response
• Diplomatic / Government Engagement
Raise the issue with US government via bilateral or multilateral forums, possibly seek exemptions or gradual implementation.
• Support for Affected Workers / Students
Guidance, perhaps financial or policy support for those impacted (scholarships, legal/visa advisory).
• Encouragement of Alternative Pathways & Domestic Growth
Boost domestic tech and innovation sectors to provide opportunities at home or via remote work.
• Negotiation for Special Provisions
For example, lower fees for certain classes (students who transition to STEM jobs; large employers; long term service firms).
