$100,000 H-1B visa fee to hit US tech firms hardest: Govt sources

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The Indian government is assessing the fallout of US President Donald Trump’s decision to impose a $100,000 annual fee on H-1B visas, a move that could severely disrupt the technology industry and Indian professionals working in the United States, a senior government official told Moneycontrol.

The official said New Delhi is in touch with the Indian Embassy in Washington and is holding consultations with Indian tech industry body NASSCOM. “There will be an immediate fallout. We have to see how companies adapt to it,” the official noted.

The official stressed that the new costs are likely to weigh more heavily on American technology firms, which rely heavily on Indian professionals for specialised roles.

At the same time, India sees a potential upside. “In a positive sense, more companies will be setting up global capability centres (GCCs) to meet the shortage of talent,” the official added.

The government also expects that the proclamation could face legal challenges in the United States, given its sweeping impact on employers and foreign workers alike.

On Friday, US President Donald Trump a proclamation restricting the entry of H-1B visa holders and sharply increasing the application fee to $100,000.

The H-1B program allows U.S. companies to hire foreign workers for high-skilled roles that cannot be easily filled by American citizens or permanent residents. Under the new order, employers seeking to sponsor foreign workers must now pay $100,000 per visa annually, a drastic rise from previous costs.

Also read: $100,000 visa wall: How Trump’s H-1B move could reset India-US talent, tech and hiring