Now Reading: US proposes $1 lakh H-1B fee, may push Indian IT hiring offshore
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US proposes $1 lakh H-1B fee, may push Indian IT hiring offshore
US proposes $1 lakh H-1B fee, may push Indian IT hiring offshore
The US has proposed a $103,265 fee for new H-1B visa petitions, a steep rise from the current $2,000 to $10,000 per petition. Indian IT firms that rely on on-site staffing in…
The US has proposed a $103,265 fee for new H-1B visa petitions, a steep rise from the current $2,000 to $10,000 per petition. Indian IT firms that rely on on-site staffing in America will be hit hardest, and the move could push US companies to send more work offshore or hire locally. The proposal is open for public comment for 30 days.
India accounts for more than 70 per cent of H-1B holders. In FY2025, Indians received 2.83 lakh H-1B visas, nearly 70 per cent of all visas issued. TCS secured 4,450 H-1B approvals in FY26, down from 6,126 in FY25, while Infosys approvals rose to 4,113 from 2,856.
Nasscom said Indian IT firms have invested $1.1 billion in the US STEM talent base and expanded local hiring. It argued the H-1B programme was meant to fill temporary skill shortages. A similar $100,000 fee introduced in September 2025 was blocked by a US federal court.
Indian Opinion Analysis
The H-1B fee proposal is the latest in a decade-long US push to tighten skilled-worker immigration. A previous attempt in 2025 to impose a $100,000 fee was struck down by a federal court, and the new proposal may face similar legal challenges. For Indian IT firms, the cost per employee could jump from roughly Rs 1.7 lakh to Rs 86 lakh, making on-site roles in the US uneconomical for all but the highest-value projects. The 30-day public comment period ends in late September 2026, if the rule is finalised, the impact will depend on how many firms shift to local US hiring versus moving work to India or other low-cost locations. The competition for Indian tech talent is also rising from Canada, Australia and the UK, which have eased their own visa rules.
Source: newindianexpress.com
This brief was synthesised by AI from the source linked above.
