US H-1B fee proposal may slow Indian IT hiring, push work offshore
A proposed $103,265 H-1B visa fee in the US may reduce Indian IT hiring and push work offshore. The fee, up from $2,000-10,000, aims to cover immigration costs and encourage hiring of American workers. India accounts for 70% of H-1B visas, with 2.83 lakh issued in FY2025. Indian IT firms like TCS and Infosys have seen changes in H-1B approvals. The proposal is open for public comment for 30 days.
How this was made
The 30-second read
Why it matters
The policy could reshape hiring strategies for Indian IT giants and affect U.S. tech staffing markets.
Market read
Regulatory change may pressure Indian IT stocks and alter U.S. tech labor dynamics.
What to watch
Potential acceleration of automation and AI tools to reduce reliance on H‑1B talent.
Background
The U.S. administration proposes a $103,265 fee for new H‑1B petitions, up from $2,000‑$10,000, aiming to prioritize American workers.
Ticker impact
Infosys H-1B approvals fell to 4,113 for FY26, reflecting the impact of the fee proposal on its U.S. hiring pipeline.
Possible modest decline or increased volatility in INFY shares.
Higher visa fees increase labor costs and may shift projects offshore.
Market effects
U.S. tech staffing and consulting services may face higher costs, benefiting domestic labor providers.
Indian IT exporters could see reduced U.S. revenue growth, while U.S. firms may increase domestic hiring.
The fee change could shift competitive dynamics for global tech talent across multiple regions.
Counterpoint
Higher fees may incentivize Indian firms to invest more in U.S. on‑shore talent pipelines, offsetting visa constraints.
Key entities
- companyTCS
Indian IT services firm with declining H‑1B approvals.
- companyInfosys
Another Indian IT services firm facing similar H‑1B approval drop.
- industry_bodyNASSCOM
Indian IT industry association commenting on the proposal.
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