New York City, NY, USA: President Donald Trump has delivered a major blow to Indian IT professionals aspiring to work in the United States, along with the companies that sponsor them. Under the new rules, every fresh H-1B visa application will incur a fee of $100,000 (approximately ₹83 lakh). India is among the hardest-hit nations, as Indians accounted for 71% of H-1B visas issued last year. The increase has had a significant negative effect on the stock prices of Indian IT leaders such as TCS and Infosys.
Following the announcement of the visa fee hike, shares of TCS and Infosys experienced a sharp decline. TCS stock dropped by 8.9%, while Infosys fell by 6.1% within a week. The additional fee is expected to directly reduce the profit margins of Indian firms that deploy employees to the U.S. Conversely, U.S.-based tech giants like Amazon and Microsoft also employ H-1B visa holders. Amazon's shares decreased by 4.9%, while Microsoft saw a modest drop of 1.4%.
The relatively minor effect on American corporations can be explained by the higher salaries they provide to H-1B employees. TCS pays its H-1B workforce an average of $78,000 per year (around ₹65 lakh), while Infosys offers roughly $71,000 annually (about ₹59 lakh).
In comparison, U.S. tech companies pay much higher wages: Amazon’s average salary for H-1B employees is $143,000 (around ₹1.19 crore), and Microsoft’s is $141,000 (approximately ₹1.17 crore). In this context, the $100,000 fee is nearly equivalent to the annual pay of Indian IT employees, placing immense pressure on their profit margins. As a result, the new regulation disproportionately affects Indian IT firms.
Interestingly, American companies have shown limited opposition to the fee hike. H-1B visas are allocated through a lottery system, so if Indian firms reduce the number of applications due to the increased costs, the odds of securing visas for U.S. companies will automatically improve. Experts suggest that the $100,000 fee could be the initial step toward prioritising visa allocation for higher-paying employers.
This policy shift may also present opportunities for India. With H-1B fees rising, Indian IT firms might choose to hire more employees locally rather than sending them to the U.S. The saved expenditure could be invested in creating domestic jobs, potentially benefiting Indian workers. Analysts predict that if companies adjust to this model, their stock values may recover over time, offering a promising prospect for long-term investors.
Tata Consultancy Services’ HR head confirmed that the company is well-positioned to adapt to these changes. He highlighted that TCS is already expanding local hiring in the U.S. and has significantly reduced its dependency on H-1B visas. Currently, only 500 TCS employees are working in the U.S. under H-1B visas, he added.
