Government Consults Nasscom Over US H-1B Visa Fee Hike

The Indian government and the apex IT industry body Nasscom are reviewing the impact of the US administration’s new $100,000 annual fee on H-1B visas, effective from September 21.

Government sources confirm that officials are coordinating with the Indian Embassy in Washington, DC, and holding consultations with Nasscom to assess potential implications for the IT sector.

Experts expect the fee increase to hit US companies that rely heavily on Indian talent for specialised and high-skilled roles.

Experts suggest that the change may encourage a surge in global capability centres (GCCs) within India to address the shortage of tech professionals in the US following the new visa regulation.

GCCs Poised for Expansion in India

Indians remain the largest holders of H-1B visas globally, followed by Chinese nationals. In response, GCCs are preparing for talent expansion in India, with nearly 48 per cent planning to increase their workforce beyond 2024 levels.

Finance Minister Nirmala Sitharaman highlighted India’s growing role as a hub for innovation, research and development, and leadership development, noting that India now hosts nearly half of the world’s GCCs.

“With the right policies, infrastructure, and skilling, this sector can define our journey to Viksit Bharat 2047,” she said during the ‘CII GCC Business Summit’.

US-based companies have historically accounted for around 70 per cent of GCC recruitment since 2021, while GCCs from the UK, EMEA, and APAC regions have also expanded their operations, strengthening India’s position as a global technology hub. India currently hosts roughly 1,700 GCCs, with projections to exceed 2,100 by 2029-30.

CP Gurnani, Co-founder and CEO of AIonOS, noted that Indian IT companies have significantly reduced their dependence on H-1B visas over recent years, with filings falling by over 50 per cent.

“This shift results from strategies to hire locally, invest in automation, and enhance global delivery models. While visa fees may rise, the impact on business will be minimal, as we have already adapted to this evolving landscape,” he explained.

The consultations between the government and Nasscom aim to ensure that Indian IT firms remain resilient amid evolving US visa policies, maintaining India’s leadership in the global technology ecosystem.

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