Nasscom warns $100,000 H-1B visa fee could disrupt US innovation and Indian IT’s business continuity

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Nasscom on September 19 said that the new proclamation introducing a $100,000 annual fee on US’ H-1B visa applications, will impact wider job economy, disrupt Indian IT firms’ business continuity despite the industry reducing H-1B dependency over the years.

The technology industry body added that it is still reviewing the finer details of the order as adjustments of this nature can “potentially have ripple effects on America’s innovation ecosystem and the wider job economy.”

“It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects and additional cost will require adjustments. Companies will work closely with clients to adapt and manage transitions,” Nasscom said in a statement.

Unless challenged in the court, US President Donald Trump’s executive order will come into effect on September 21, 12:01 AM eastern time. “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption,” the industry body said.

Nasscom emphasised that the India and India-centric companies have been steadily reducing dependency on H-1B visas through increased local hiring in recent years. Recently, Moneycontrol had reported that between FY15 to FY23, approved H-1B petitions for initial employment from the top seven Indian IT firms fell 56 percent.

It plunged from 15,100 in FY15 to 6,700 in FY23, according to data from the National Foundation for American Policy (NFAP).

“These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups. The H-1B workers for these companies by no means are a threat to national security in the US,” the statement said.

"Nasscom has consistently emphasized that high-skill talent is vital to driving innovation, competitiveness, and growth for America’s economy...While developments are underway, we will continue to monitor developments closely, engage with industry stakeholders on the potential implications, and seek further clarity on aspects such as the waiver process outlined in subsection (e)."