What Happened
The US has raised the H-1B visa application fee for new petitions to $100,000. This does not apply to renewals, but it immediately raises costs for Indian IT companies and professionals hoping to move to the US.
At the same time, a proposed outsourcing tax law (HIRE Act) could impose up to 25% levy on US firms outsourcing jobs overseas — a double blow to India’s tech sector.
Impact on India
- Indian IT companies face higher costs and may need to shift more work offshore or hire locally in the US.
- Workers see fewer H-1B opportunities and higher risks for families.
- Industry may see contract renegotiations and pressure on profit margins.
What Companies Might Do
- Hire more US-based staff to reduce visa dependency.
- Expand outsourcing to other regions beyond the US.
- Use automation and AI to reduce workforce needs.
- Lobby governments to slow down or modify rules.
Outlook
This fee hike is a shock, but not the end. India’s IT sector has adapted before, and may again. The bigger risk is if an outsourcing tax becomes reality, as it would directly weaken the global services model India depends on.
What do you think — should Indian IT companies hire more in the US, or fight these rules through diplomacy? Leave a comment below.