‘H-1B clarification eases immediate worry, Indian industry to spruce up local US hiring’

New Delhi: Nasscom on Monday said the US clarification that the H-1B visa fee hike will not affect current visa holders and will apply as a one-time fee only to fresh petitions has helped address the immediate ambiguity surrounding eligibility and timelines.

It alleviates concerns about business continuity and uncertainty for H-1B holders who were outside the US.

Further, Indian and India-centric companies operating in the US have significantly reduced their dependencies on H-1B visas and are increasing local hiring, it said, adding that given this, “we anticipate only a marginal impact for the sector”.

“Moreover, with the fee being applicable from 2026 onward, it gives companies time to further step up skilling programs in the US and enhance local hiring,” the apex industry body said.

The industry is spending over $1 billion on local upskilling and hiring in the US, and the number of local hires has increased tremendously.

“The clarification makes clear that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions. This has helped address the immediate ambiguity surrounding eligibility & timelines,” it said.

Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependencies on H-1B visas and steadily increased their local hiring.

According to available data, the number of H-1B visas issued to leading Indian and India-centric companies has decreased from 14,792 in 2015, to 10,162 in 2024, H-1B workers for the top 10 Indian and India-centric companies are less than 1 per cent of their entire employee base. “Given this trajectory, we anticipate only a marginal impact for the sector,” it said.

H-1B is high-skilled worker mobility and a non-immigrant visa that bridges the critical skills gap in the US. Salaries are at par with local hires.

According to Nasscom, H-1B workers are a mere decimal point of the overall US workforce.

“Nasscom has consistently advocated for predictable and stable skilled talent mobility frameworks, which are critical for sustaining national competitiveness and have long fuelled US innovation and economic growth.

Skilled talent mobility will be central to enabling businesses to make forward-looking investment decisions, accelerate research, and strengthen nations’ position in the global innovation economy,” it added.

The Indian IT industry exhaled a sign of relief on Sunday after the US Government clarified that the H-1B visa application fee increase to $100,000 applies only to new applicants and does not affect existing visa holders or renewals. The H-1B visa fee ranges from about $2000 to $5000, depending on employer size and other costs.

While some industry experts noted that they foresee no immediate adverse impact over the next 6-12 months as the hike takes effect only in the upcoming application cycle, others cautioned that the delay notwithstanding, there could be a deferred impact requiring reassessment eventually of business strategies by IT companies, if the rule stays.

White House officials’ clarification came with a lag of a few hours after President Donald Trump signed the proclamation raising the application fee on the visas used by companies to hire workers, including from India, to live and work in the US. In its immediate aftermath, the proclamation set off a frenzied response among companies as well as H-1B holders travelling outside the US, about the deadline of September 21, leading to scenes of chaos at some airports.