The US President Donald Trump and his administration’s decision to raise the H-1B visa fee to $100,000 has sent ripples across the global talent market. India, the largest beneficiary of H-1B visas, faces the biggest jolt, as it accounted for nearly 71% of approvals in 2024. While the hike will not affect existing holders, it applies as a one-time cost for fresh petitions starting in 2026.
According to Nasscom, the impact on Indian IT services firms will be minimal. The industry body highlighted that companies have already been reducing reliance on H-1B workers and investing heavily in local hiring. Over $1 billion has been spent on upskilling and workforce development in the US, with local hiring now making up the majority of their employee base.
According to data, the number of H-1B issuances for Indian IT companies has sharply declined from 14792 in 2015 to only 10162 in 2024. Indeed, workers holding H-1B visas now constitute less than 1% of the total workforce at the major Indian firms and those dedicated to India.
Experts believe that the near-term impact will be minor, as the increase applies to the new issuance cycle. If the policy continues, however, the IT majors may need to revisit their long-term strategies. Meanwhile, social media was lively with anxious H-1B workers engaging in discussions about possible travel and re-entry following the announcement.
Shift in Hiring Patterns
Over the last few years, Indian companies have cut down their dependence on H1 B visas. Instead, they have started investing in upskilling US workers. According to Nasscom, the total spending on training has risen to over $1 billion. So, this may boost local hiring and, in turn, the US economy. However, netizens wonder whether, in a globalized world, turning the pages back to the history of shunning foreign workers and creating a closed economy will backfire in the long run.
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