US H-1B Visa Fee Hike

The United States has decided to impose a USD 100,000 fee on new H-1B visas for foreign workers, effective September 21, 2025. This move, initiated by the Donald Trump administration, is projected to trim the operating margins of Indian information technology (IT) services companies, including Tata Consultancy Services, Infosys, Wipro, and HCLTech, by 10-20 basis points. However, these companies are expected to pass through 30-70% of the incremental cost to their clients. The reliance of Indian IT firms on H-1B visas has been decreasing since 2018 due to higher denial rates, leading them to expand offshore delivery and hire locally in the United States. The fee hike is also anticipated to reduce remittance inflows to India from the United States and may deter Indian students from pursuing higher education in the United States, potentially accelerating offshoring.