<p>Bengaluru: The revised H-1B visa fee hike will have only a marginal impact on India's IT sector, said IT industry body Nasscom and several industry analysts.</p>.<p>Nasscom said H-1B workers constitute less than 1% of the entire employee base of top 10 Indian and India-centric companies. "Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependency on H-1B visas and steadily increased their local hiring," it said.</p>.<p>As per available data, H-1B visas issued to leading India and India-centric companies have decreased from 14,792 in 2015 to 10,162 in 2024.</p>.<p>Apart from Nasscom, industry analysts and brokerages said they don't see a significant impact of the new visa fee.</p>.Exemptions from H-1B visa fees could include doctors.<p>Motilal Oswal Financial Services in its report said Indian IT services companies have been reducing their reliance on H-1B visas. </p>.<p>IT firm Persistent in a BSE filing said that they do not expect any significant impact of the Executive Order issued by US President Donald Trump on its operations or financials. Cyient too said it doesn't anticipate any material impact on its financials for FY26 and immediate term. </p>.<p>Meanwhile, Indian stock markets have responded instantly to Trump's new move. As investors recalculated risk, Indian IT stocks fell on Monday, with the Nifty-IT index down 2.6-3.5% and behemoths like TCS, Infosys, Wipro, and Cognizant falling by 2-6%. </p>.<p>Praveen Joshi, MD & a founding member of RSK Business Solutions, said more than just a change to the law, the recently announced $100,000 charge for new H-1B visa applications marks a turning point for Indian software companies. </p>.<p>"H-1B has facilitated revenue flows, talent mobility and cross-border delivery models for many years. The cost structure has changed significantly, and startups and mid-sized businesses are particularly at risk," he said.</p>.<p>"Companies that move quickly, localise recruitment, invest in automation, go back to offshore delivery, and are frugal will succeed. Companies that resist change risk losing not only their strategic importance but also their bottom lines," Joshi added.</p>.<p>After the initial confusion about the applicability of the new rule, the White House had clarified that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions. </p>.<p>"This has helped address the immediate ambiguity surrounding eligibility and timelines. This alleviates concerns on business continuity and uncertainty for H-1B holders who were outside the US. Moreover, with the fee being applicable from 2026 onwards, companies will get more time to further step up skilling programmes in the US and enhance local hiring. The industry is spending more than $1 billion on local upskilling and hiring in the US, and the number of local hires has increased tremendously," Nasscom added.</p>
<p>Bengaluru: The revised H-1B visa fee hike will have only a marginal impact on India's IT sector, said IT industry body Nasscom and several industry analysts.</p>.<p>Nasscom said H-1B workers constitute less than 1% of the entire employee base of top 10 Indian and India-centric companies. "Over the years, Indian and India-centric companies operating in the US have significantly reduced their dependency on H-1B visas and steadily increased their local hiring," it said.</p>.<p>As per available data, H-1B visas issued to leading India and India-centric companies have decreased from 14,792 in 2015 to 10,162 in 2024.</p>.<p>Apart from Nasscom, industry analysts and brokerages said they don't see a significant impact of the new visa fee.</p>.Exemptions from H-1B visa fees could include doctors.<p>Motilal Oswal Financial Services in its report said Indian IT services companies have been reducing their reliance on H-1B visas. </p>.<p>IT firm Persistent in a BSE filing said that they do not expect any significant impact of the Executive Order issued by US President Donald Trump on its operations or financials. Cyient too said it doesn't anticipate any material impact on its financials for FY26 and immediate term. </p>.<p>Meanwhile, Indian stock markets have responded instantly to Trump's new move. As investors recalculated risk, Indian IT stocks fell on Monday, with the Nifty-IT index down 2.6-3.5% and behemoths like TCS, Infosys, Wipro, and Cognizant falling by 2-6%. </p>.<p>Praveen Joshi, MD & a founding member of RSK Business Solutions, said more than just a change to the law, the recently announced $100,000 charge for new H-1B visa applications marks a turning point for Indian software companies. </p>.<p>"H-1B has facilitated revenue flows, talent mobility and cross-border delivery models for many years. The cost structure has changed significantly, and startups and mid-sized businesses are particularly at risk," he said.</p>.<p>"Companies that move quickly, localise recruitment, invest in automation, go back to offshore delivery, and are frugal will succeed. Companies that resist change risk losing not only their strategic importance but also their bottom lines," Joshi added.</p>.<p>After the initial confusion about the applicability of the new rule, the White House had clarified that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions. </p>.<p>"This has helped address the immediate ambiguity surrounding eligibility and timelines. This alleviates concerns on business continuity and uncertainty for H-1B holders who were outside the US. Moreover, with the fee being applicable from 2026 onwards, companies will get more time to further step up skilling programmes in the US and enhance local hiring. The industry is spending more than $1 billion on local upskilling and hiring in the US, and the number of local hires has increased tremendously," Nasscom added.</p>