US imposes US$100,000 fee on skilled visas, sparking confusion and IT sector concerns
Washington’s sudden overhaul of the H-1B visa programme has shaken India’s students and tech workers, long the largest beneficiaries of America’s skilled-worker scheme. A new US$100,000 fee announced on Sept 19 has left aspiring migrants rethinking their futures while companies scramble to assess the impact.
A Sudden Visa Shock
The new fee, introduced by US Commerce Secretary Howard Lutnick beside President Donald Trump, was initially described as annual before being clarified as a one-off payment. Still, the abrupt policy shift rattled students like 21-year-old Sudhanva Kashyap from Bengaluru, who had hoped to study at Stanford and transition into the US job market. “I am very disappointed… my main dream is derailed as things stand now,” he told AFP.
Indian Students and Workers at Risk
The US awards 85,000 H-1B visas annually by lottery, with Indians making up around 71% of approvals in 2024. Many rely on this route after completing higher studies in the US, where more than 422,000 Indian students were enrolled last year. Industry body Nasscom warned the fee hike would disrupt “business continuity” for tech firms that depend on Indian talent.
Corporate and Worker Reactions
Leading firms quickly advised H-1B holders not to leave the US until details were clear, fearing re-entry issues. Some passengers even disembarked from flights. For many young Indians, the new barrier is prompting a pivot to Europe. Chemical engineering student Shashwath VS, 20, said: “Going to the US was a priority for me, but not anymore. I will now explore Germany, the Netherlands, or the UK.”
Tech Sector Ripple Effects
India’s IT outsourcing giants—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—have long relied on H-1B visas to serve US clients. In the first half of 2025 alone, TCS secured over 5,000 approvals. Experts now expect firms to accelerate offshore delivery, limit staff rotations, and increase hiring of US citizens. “The ‘American Dream’ for aspiring workers will be tough,” said Ganesh Natarajan, former CEO of Zensar Technologies.
Legal and Political Fallout
Immigration lawyers anticipate lawsuits challenging Trump’s move. “Companies will reserve H-1B filings for only the most business-critical roles,” said Vic Goel of US law firm Goel & Anderson. The crackdown, part of Trump’s second-term immigration agenda, could shrink opportunities for thousands of Indian professionals while reshaping global outsourcing models.
A Shift Toward Global Capability Centres
Analysts believe the restrictions may accelerate the growth of global capability centres (GCCs) in India and other regions. Already home to more than half the world’s GCCs, India could host over 2,200 such hubs by 2030, generating nearly US$100 billion in market size and millions of jobs. “We are seeing a new world order on services economics,” said Ray Wang, founder of Constellation Research.
The visa fee shock threatens to derail the dreams of Indian students and tech workers while unsettling the very outsourcing model that underpins India-US economic ties. As opportunities shift, both countries face new realities: fewer Indians in American workplaces, and a stronger push for innovation and job creation in India and other global hubs.
Sources: The Business Times (2025) , CNA (2025)
Keywords: H-1B Visa, Indian Students, Trump Immigration, Skilled Worker Visa, IT Outsourcing
