India’s IT services sector will face higher costs and possible disruption of onshore projects after the US move to impose a $100,000 annual fee on H-1B visas, industry body Nasscom said on Saturday.
The September 21 implementation timeline for the new rule has raised concerns, with Nasscom saying the one-day deadline creates considerable uncertainty for Indian IT companies.
The Trump administration said on Friday it would ask companies to pay the new fee per year for H-1B worker visas, prompting some big tech companies to warn visa holders to stay in the U.S. or quickly return.
ALSO READ: Are you safe from Trump's $100,000 H-1B visa hit? Check here
The change could deal a big blow to the technology sector that relies heavily on skilled workers from India and China.
Since taking office in January, Trump has kicked off a wide-ranging immigration crackdown, including moves to limit some forms of legal immigration. The step to reshape the H-1B visa program represents his administration's most high-profile effort yet to rework temporary employment visas.
ALSO READ: Microsoft, Amazon, TCS, Apple: Tech giants that could be hit hardest by Trump’s $100,000 H-1B visa fee
"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land," said Commerce Secretary Howard Lutnick. Train Americans. Stop bringing in people to take our jobs."
Trump's threat to crack down on H-1B visas has become a major flashpoint with the tech industry, which contributed millions of dollars to his presidential campaign.
Microsoft, JPMorgan and Amazon responded to the announcement by advising employees holding H-1B visas to remain in the United States, according to internal emails reviewed by Reuters.
ALSO READ: Amazon advises H-1B, H-4 workers to return to US ASAP to avoid Trump's $100,000 fee diktat
They advised employees on the H-1B visas who were outside the U.S. to return before midnight on Saturday (0400 GMT on Sunday), when the new fee structures are set to take effect.
"H-1B visa holders who are currently in the U.S. should remain in the U.S. and avoid international travel until the government issues clear travel guidance," read an email sent to JPMorgan employees by Ogletree Deakins, a company that handles visa applications for the U.S. investment bank.
Microsoft, JPMorgan, law firm Ogletree Deakins, which represents the bank on the issue, and Amazon did not immediately respond to Reuters requests for comment.
The number of foreign science, technology, engineering and mathematics (STEM) workers in the U.S. more than doubled between 2000 and 2019 to nearly 2.5 million, even as overall STEM employment only increased 44.5% during that time, it said.
India accounts for most H-1B visas
India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China was a distant second at 11.7%, according to government data.
In the first half of 2025, Amazon.com and its cloud-computing unit, AWS, had received approval for more than 12,000 H-1B visas, while Microsoft and Meta Platforms had over 5,000 H-1B visa approvals each.
Lutnick said on Friday that "all the big companies are on board" with $100,000 a year for H-1B visas.
"We've spoken to them," he said.
Many large U.S. tech, banking and consulting companies declined to comment or did not immediately respond to requests for comment. The Indian embassy in Washington and the Chinese Consulate General in New York also did not immediately respond to requests for comment.
Shares of Cognizant Technology Solutions, an IT services company that relies extensively on H-1B visa holders, closed down nearly 5%. U.S.-listed shares of Indian tech firms Infosys and Wipro closed between 2% and 5% lower.
The September 21 implementation timeline for the new rule has raised concerns, with Nasscom saying the one-day deadline creates considerable uncertainty for Indian IT companies.
The Trump administration said on Friday it would ask companies to pay the new fee per year for H-1B worker visas, prompting some big tech companies to warn visa holders to stay in the U.S. or quickly return.
ALSO READ: Are you safe from Trump's $100,000 H-1B visa hit? Check here
The change could deal a big blow to the technology sector that relies heavily on skilled workers from India and China.
Since taking office in January, Trump has kicked off a wide-ranging immigration crackdown, including moves to limit some forms of legal immigration. The step to reshape the H-1B visa program represents his administration's most high-profile effort yet to rework temporary employment visas.
ALSO READ: Microsoft, Amazon, TCS, Apple: Tech giants that could be hit hardest by Trump’s $100,000 H-1B visa fee
"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land," said Commerce Secretary Howard Lutnick. Train Americans. Stop bringing in people to take our jobs."
Trump's threat to crack down on H-1B visas has become a major flashpoint with the tech industry, which contributed millions of dollars to his presidential campaign.
Microsoft, JPMorgan and Amazon responded to the announcement by advising employees holding H-1B visas to remain in the United States, according to internal emails reviewed by Reuters.
ALSO READ: Amazon advises H-1B, H-4 workers to return to US ASAP to avoid Trump's $100,000 fee diktat
They advised employees on the H-1B visas who were outside the U.S. to return before midnight on Saturday (0400 GMT on Sunday), when the new fee structures are set to take effect.
"H-1B visa holders who are currently in the U.S. should remain in the U.S. and avoid international travel until the government issues clear travel guidance," read an email sent to JPMorgan employees by Ogletree Deakins, a company that handles visa applications for the U.S. investment bank.
Microsoft, JPMorgan, law firm Ogletree Deakins, which represents the bank on the issue, and Amazon did not immediately respond to Reuters requests for comment.
The number of foreign science, technology, engineering and mathematics (STEM) workers in the U.S. more than doubled between 2000 and 2019 to nearly 2.5 million, even as overall STEM employment only increased 44.5% during that time, it said.
India accounts for most H-1B visas
India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China was a distant second at 11.7%, according to government data.
In the first half of 2025, Amazon.com and its cloud-computing unit, AWS, had received approval for more than 12,000 H-1B visas, while Microsoft and Meta Platforms had over 5,000 H-1B visa approvals each.
Lutnick said on Friday that "all the big companies are on board" with $100,000 a year for H-1B visas.
"We've spoken to them," he said.
Many large U.S. tech, banking and consulting companies declined to comment or did not immediately respond to requests for comment. The Indian embassy in Washington and the Chinese Consulate General in New York also did not immediately respond to requests for comment.
Shares of Cognizant Technology Solutions, an IT services company that relies extensively on H-1B visa holders, closed down nearly 5%. U.S.-listed shares of Indian tech firms Infosys and Wipro closed between 2% and 5% lower.
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