Indian IT firms, with significant exposure to the US market, came under heavy pressure after President Donald Trump signed a proclamation on Friday imposing a staggering $100,000 annual fee on H-1B visas.
The move, part of the administration’s broader immigration overhaul, is set to make it costlier for firms to hire Indian technology professionals.
Infosys stocks fell by as much as 4.5 per cent on Friday, September 19, after reports surfaced that US President Donald Trump plans to sign an order requiring a $100,000 fee for H-1B visa applications.
Indian IT service providers, including Infosys, are among the biggest users of H-1B visas. They typically staff their US projects with skilled workers from India, but the new fee would directly threaten this cost-saving model.
Other tech companies also saw a decline in Friday's trade. Cognizant Technology’s share price went down by 4.3%, while Accenture’s shares slipped 1.3% and Wipro slid 3.4%.
The White House proclamation restricts the entry of foreign nationals under the H-1B category — used to employ skilled professionals in specialised occupations — unless a USD 100,000 payment accompanies each petition. Employers will now be required to retain proof of payment, which will be verified by the Secretary of State during the visa process.
Lutnick backs H-1B crackdown
Announcing the move at the Oval Office, Trump said the hefty fee would ensure that only the “very highly skilled” are brought into the country and would prevent companies from replacing American workers with cheaper foreign talent. “We need workers. We need great workers, and this pretty much ensures that that’s what’s going to happen,” the President remarked while signing the proclamation in the presence of Commerce Secretary Howard Lutnick.
Lutnick added that the measure would raise more than $100 billion for the US Treasury, with funds earmarked for tax cuts and debt reduction. “Either the person is very valuable to the company and America, or they’re going to depart and the company is going to hire an American. That’s the point of immigration — hire Americans and make sure the people coming in are the top, top people,” he said.
Indian IT firms to be hit
The latest move will hit Indian IT services firms the hardest, as they are among the largest users of H-1B visas. The programme, which allows employment in the US for three years with a possible three-year extension, has long been a key gateway for Indian technology workers. With Indian nationals already facing a decades-long backlog for permanent residency, the new annual cost raises doubts over the continued viability of companies sponsoring such workers.
The proclamation was accompanied by the unveiling of a new “Gold Card” visa, which offers a fast-track path to US residency for foreigners of “extraordinary ability” willing to invest $1–2 million into the US Treasury.
Indian IT companies now employ over 50 percent local staff in their US operations, reducing visa dependency further. This push for local recruitment, spending on AI and upskilling, and adjustments to changing policy regimes have necessitated Indian service providers to balance regulatory risk with operational agility.
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