Nasscom says White House clarification to help 'alleviate concerns' even as IT stocks turn red

The new visa rule weighed on Indian stocks as Nifty IT and BSE IT fell 2-3 percent in early morning trade

IT industry body Nasscom on September 22 in a statement welcomed the clarification issued by the White House on the H-1B visa fee hike announced by the US government, saying it will help ease concerns.

“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,” the body said in a statement.

The clarification, it said, will help alleviate concerns of business continuity and uncertainty for H-1B visa workers.

However, the new visa rule weighed on Indian stocks as Nifty IT and BSE IT indices fell 2-3 percent in early morning trade, while the benchmarks BSE Sensex and Nifty50 recovered some of the losses to trade flat.

Nasscom said the fee hike is applicable from 2026, which will provide time to companies to increase their local hiring.

“The industry is spending more than a billion USD on local upskilling and hiring in the US, and the number of local hires has increased tremendously,” it said.

In addition, Nasscom said the Indian companies operating in the US have already reduced their “dependencies” on H-1B visas and “steadily” firmed up their local hiring plans.

The number of H-1B visas have dropped from 14,792 in 2015 to 10,162 in 2024, Nasscom said citing data, adding that such workers account for less than 1 percent of the total employee base.

Therefore, the body expects only a “marginal impact” for the sector.

US President Donald Trump on September 19 announced a hefty fee of $100,000 for new H-1B visa applicants as he seeks to increase job opportunities for US-born workers.