H-1B visa fee hike likely to hit Indian IT firms by $1 billion: Sandip Agarwal of Sowilo Investment Managers

Indian visa consultants have raised concerns over US President Donald Trump’s Executive Order that increases the fee companies must pay to sponsor H-1B applicants to $100,000.

Sandip Agarwal, Managing Director of Sowilo Investment Managers, has cautioned that the proposed $100,000 fee on H1B visas could deliver a significant blow to India’s top IT firms.

Speaking to CNBC-TV18, Agarwal explained the financial impact through a simple calculation: “The top five Indian IT companies together clock about $80 billion in revenues. Roughly 10,000 visas come from these firms. If you multiply that by $100,000, the hit is about $1 billion.”

He added that this $1 billion translates to nearly a 7% squeeze on operating margins, which could weigh heavily on profitability.

According to Agarwal, the increased cost burden underscores the need for Indian IT majors to rethink workforce planning and optimize resource deployment, as such policy moves directly affect cost structures and competitiveness.

THE H1B VISA MATH

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'Top 5 Indian IT firms clock $80 bn in revenues. 10,000 visas are est from these firms→ $1 bn hit (10,000 × $100K). This translates to a 7% squeeze on margins' Sandip Agarwal of Sowilo Invst Managers on the impact of $100,000 fee on #H1Bvisas. @Reematendulkar pic.twitter.com/u2J7CHRXZV

— CNBC-TV18 (@CNBCTV18News) September 20, 2025

Trump’s $100,000 H-1B visa fee hike will hit Indians the hardest, says AVIC President

Indian visa consultants have raised concerns over US President Donald Trump’s Executive Order that increases the fee companies must pay to sponsor H-1B applicants to $100,000.

Bikram Chabhal, President of the Association of Visa and IELTS Centres (AVIC), told ANI that the move will impact Indian workers the most. "70% of H-1B visa holders are Indians. After Indians, come Chinese, followed by people from other countries. Previously, the total fee was $215, plus another $750. Now, it translates to eighty-eight lakh plus in Indian rupees," Chabhal said.

He added, "I believe these companies will have to struggle a lot in the future. If a company has to pay a fee of one lakh dollars every year, then companies won't be able to afford that much money."

Highlighting the disproportionate impact on Indians, Chabhal stressed, "The biggest disadvantage of this seems to be for Indians, as Indians used to go extensively on this visa... After receiving those visas, they would then obtain green cards and become American citizens. This will impact them significantly."

Looking ahead, however, he suggested the move could have a silver lining for India. "In the future, this will benefit India more because if specific workers return to India, they will be able to do something good for India. However, America will not find specialised workers in America..." Chabhal said.

*With Agency Inputs