India, with a $285 billion IT-BPM industry, is particularly hit with the U.S. President Donald Trump signing an executive order imposing a $100,000 one-time fee on all new H-1B visa applications.
The policy targets foreign tech workers, citing “abuse” of the program.
Renewals are exempt, but the immediate disruption is significant.
Over half of India’s revenues come from U.S. clients, and firms like TCS, Infosys, and Wipro rely heavily on H-1B visas.
Indians account for 71% of approvals, far ahead of other nations.
The U.S. economy also depends on this pipeline.
Immigrant talent supports startups, which generate 70% of new jobs and 40% of GDP growth.
Over half of U.S. unicorns were founded by immigrants or their children, many linked to H-1B.
The fee, viewed as prohibitive, has forced Indian IT companies to pause sponsorships.
Only senior specialists may qualify, side-lining junior engineers and delaying U.S. project rollouts.
Margins are tightening, with billing rates expected to rise 10–15%.
Clients may reprice or cut scope, risking cancellations in an already uncertain economy.
Contrary to criticism, H-1B workers are net contributors.
In 2024, they generated $86 billion in output and paid $35 billion in taxes.
Long-term, India may pivot to offshore delivery and Global Capability Centers, while competitors like Canada and the EU attract displaced talent.
Analysts warn the U.S. risks losing innovation capacity as both economies bear the cost.
