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US H-1B Fee Hike Unlikely to Dent Indian IT Sector, Says Nasscom

The US has proposed a substantial fee increase for H-1B visa applications, but India's technology industry body argues that domestic firms have already reduced their dependence on the visa programme.

LSN India · 25 August 2026

The United States announced on Monday a proposed additional fee of $103,265 for all H-1B visa cap-subject applications, marking a significant increase in the cost of hiring foreign workers under the programme. The move is expected to impact global technology firms that rely heavily on the visa category for deploying skilled workers to American operations.

The National Association of Software and Service Companies (Nasscom) responded by noting that Indian IT companies have substantially decreased their reliance on H-1B visas in recent years. According to the industry body, this strategic shift away from visa-dependent hiring models means the fee hike is unlikely to significantly disrupt the operations of the country's largest technology exporters.

Indian IT firms have increasingly focused on building local talent pools in the United States and shifting towards higher-value services that require fewer visa sponsorships. This transition has been driven by rising costs, regulatory scrutiny, and a broader industry push towards automation and digital transformation capabilities.

The proposed fee increase represents the latest in a series of policy measures affecting the H-1B programme, which has drawn criticism from both advocates and opponents. Proponents argue such increases discourage the programme's use, while critics contend they burden companies seeking to fill genuine skill gaps in the American workforce.