The United States has raised the H-1B visa sponsorship fee to $100,000, sparking concerns among tech companies and visa consultants. Bikram Chabhal, President of the Association of Visa and IELTS Centres (AVIC), warned the increase would heavily impact Indian workers, who comprise about 70% of H-1B visa holders.
Earlier, the visa fees were significantly lower, around $1,000. Now, the new fee converts to approximately 88 lakh Indian rupees. Chabhal stated that such a high cost may discourage companies from hiring foreign professionals, especially Indians, and may significantly reduce the number of Indian workers going to the US on H-1B visas. This could also impact the pathway many follow to gain permanent residency and citizenship.
The H-1B visa program offers 65,000 visas annually for specialized roles and an additional 20,000 for advanced degree holders. India has historically benefited the most from this, with a 71% share.
US Commerce Secretary Howard Lutnick explained the hike aims to reduce the use of visas for low-skilled or trainee positions, making it economically viable only for highly skilled roles. “If you’re going to train people, you’re going to train Americans,” he stated.
Indian IT companies like Infosys, TCS, and Wipro are expected to face challenges due to the increased cost. Industry body Nasscom expressed concern over disruptions this change may cause, especially with the short notice for implementation. They warned it could affect ongoing projects and the broader US innovation ecosystem.
Despite the immediate drawbacks, Chabhal suggested that returning skilled professionals could eventually benefit India’s economy as they bring back expertise and knowledge.
