The central government, in consultation with the IT industry body Nasscom, is evaluating the impact of the US administration’s decision to impose a $100,000 annual fee on H-1B visas, effective September 21.
According to IANS, government sources said that New Delhi is coordinating with the Indian Embassy in Washington, DC, while holding discussions with leading tech industry stakeholders.
The new visa fee is expected to affect US companies heavily reliant on Indian professionals in specialised, high-skilled tech roles. Experts also predict a surge in Global Capability Centres (GCCs in India) as firms look to fill talent gaps created by the US visa changes. Indians hold the largest share of H-1B visas, followed by China.
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GCCs poised for expansion in India
Industry insiders report that GCCs are preparing for a significant talent expansion, with 48 per cent of centres planning to grow their workforce beyond 2024 levels. Finance Minister Nirmala Sitharaman highlighted India’s leadership in this space, noting: “GCCs will consolidate India’s leadership in innovation and job creation and with the right policies, infrastructure, and skilling, this sector can define our journey to Viksit Bharat 2047,” she said at the ‘CII GCC Business Summit’.
US companies have historically accounted for nearly 70 per cent of total GCC absorption since 2021, while GCCs from the UK, EMEA, and APAC regions have steadily expanded in India. Currently, India hosts around 1,700 GCCs, with projections to exceed 2,100 by 2029-2030.
CP Gurnani, Co-founder and CEO of AIonOS, highlighted that Indian IT firms have already adapted to changes in the H-1B landscape, “This shift is a result of our ongoing strategy to hire more locally, invest in automation and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we’ve already adapted to this evolving landscape,” he said.
What Trump’s H-1B order says
US President Donald Trump’s proclamation, titled “Restriction on entry of certain nonimmigrant workers,” requires an additional $100,000 fee on H-1B visa petitions, effective from September 21, 2025, and valid for 12 months unless extended.
The directive noted that the foreign STEM workforce in the US grew from 1.2 million to 2.5 million between 2000 and 2019, while overall STEM employment grew by 44.5 per cent during the same period. Within computer and mathematics roles, foreign workers increased from 17.7 per cent in 2000 to 26.1 per cent in 2019.
The proclamation cited misuse of H-1B visas as the primary reason for this surge.
(With IANS inputs)
