Trump H-1B Visa Crackdown Upends Indian IT Industry Plan

India’s $283 billion IT sector faces significant disruption after the U.S. government announced a $100,000 fee on new H-1B visa applications, a policy that threatens the traditional model of deploying skilled Indian workers to U.S. projects.

The H-1B visa program has long been a cornerstone for companies like Tata Consultancy Services (TCS), Infosys, and Wipro, enabling them to provide on-site talent to major U.S. clients including Apple, Microsoft, Meta, and JPMorgan Chase. Indians accounted for nearly 71% of H-1B approvals last year, highlighting the sector’s dependence on this route.

Industry experts say the new fee could prompt firms to reassess their U.S. strategies, including scaling back onshore rotations, increasing offshore delivery from India and other locations, and hiring more U.S. citizens or green card holders. Companies may also expand Global Capability Centers (GCCs) in countries like India, Mexico, and Canada to mitigate the impact.

The announcement sent ripples through financial markets. The Nifty IT index fell 2.6%, with Infosys, Wipro, and TCS each dropping about 2%, while Persistent Systems saw a 4% decline. U.S.-listed shares of Infosys and Wipro also dropped following the news.

Officials later clarified that the $100,000 fee applies only to new applications starting in 2026 and does not affect current visa holders or renewals, giving companies time to adjust their strategies.

Despite this clarification, the industry remains cautious. Legal challenges are expected, and firms are actively evaluating long-term solutions to maintain access to U.S. projects while navigating the higher cost of hiring foreign talent.

The move underscores broader U.S. immigration tightening, which could have lasting implications for India’s IT sector and the global talent mobility landscape.