The US government’s sudden decision to impose an annual fee of $ 100,000 on companies that send employees to the US on H-1B visions, forced Indian IT companies to return to the drawing board. This step announced on Friday by President Donald Trump on Friday, just eight months after his term of office, set off an industry that broadcasts thousands of qualified professionals every year to the US, often for which American talent is rare.
Mint examines the wider consequences of this steep increase for the Indian IT industry of $ 250 billion and millions of experts whose livelihood depends on it.
What is H-1B visa and what frightened Trump’s administration?
The H-1B visa has a maximum of six years to work in the US, because the skills it has is not widely available in America.
Trump’s government is reportedly using society to “replace” American workers and “artificially suppress wages, leading to a disadvantageous labor market for American citizens”.
The H-1B visa was “intentionally used to replace, rather than supplement, American staff with lower, lower qualifications”, read the signed Trump proclamation on Friday.
The number of STEM foreign staff in the United States has more than doubled between 2000 and 2019, which increases from 1.2 million to almost 2.5 million, while the STEM total employment increased by only 44.5 percent. One of the main promises of Trump in the campaign for the second time was to “bring work back” to the US.
Will H-1B sponsors pay an annual fee or one-time fee?
If you have an H-1B visa that is nowhere close to restoration, you can stay in us for now. But for those who have applied for fresh visas or renewal, their sponsorship (employer) will have to pay $ 100,000 to obtain a visa whose time will differ from several months to several years, depending on the nature of the project.
There is a catch. According to Sajai Singh, partner, Jsa Advocates & Soliciters, executive orders remain valid for 12 months, then they must be renewed. If the US government decides not to pay any fee after 12 months, the order can let the order penetrate. If not, it will restore it. If the amount changes after 12 months, companies will have to pay a revised amount. “This will hit the hardest IT industry. Families that are dependent on H-1B visas will also be affected,” Singh Mind said.
Is it a blow to the Indian IT sector?
NASSCOM, an industrial body representing the IT Services sector, said that the decision “may potentially ripple on the innovation ecosystem of the American and wider economies of employment” and emphasized the impact on Indian IT industry.
“This will also have an impact on Indian nationals who are on H-1B visions who work for global and Indian companies. Indian technology services will also be affected because the continuity of business will be disrupted for mainland projects that may require modifications. The company on the mainland employs the company to work on a project in another country.
According to data from US civil and immigration services, in the first six months of 2025, TCS, Cognisant Technologies, Infosys, Lti Mindstree, Wipro sent 13,332 employees to the H-1B. Assuming a similar number of employees is sent in the next six months, the back calculation on the envelope shows that these companies will have to pay at least $ 1.3 billion in fees. In January, Mint said that according to US civil and immigration services, up to 188,400 H-1b visas were awarded in 2024. Most of them were issued to employees of technology companies. The US government has shown that almost three-quarters of the H-1B visa are provided to Indian nationals.
One day to return
Employees with H-1B visas who are outside the US will have to go back to the base by September 21st. According to lawyers, immigration officials may have instructions that allow only those H-1B visas to be entry, who have the latest fees income. Many Indian H-1B holders will probably be in India at the moment, because of the festive season.
“The one -day term creates considerable uncertainty for businesses, professionals and students around the world. Policy changes in this scale are best introduced with adequate transitional periods that allow organizations and individuals to effectively plan and minimize disruption,” Nasscom said.
Will the Indian in the USA be influenced on other types of work visas?
While H-1B visas are the most common, there is a L-1 visa that is awarded by transfer between the company. According to an industrial manager, however, this visa is too little to control. In fact, before the focus moved on H-1B visas, the US government looked at people in the US on student visa. In May, the US government ordered its embassies to stop planning new interviews for international student visas.
Previously, the US Embassy in India warned students that skipping classes or leaving the program without informing offices would lead to the abolition of their visas.
(Tagstotranslate) H1B
