New Delhi, Aug 25: India’s technology industry is closely monitoring a proposed sharp increase in the cost of US H-1B visa applications, with industry body Nasscom saying it is engaging with key stakeholders on the issue.
The proposed US regulation would introduce an additional $103,265 fee for employers filing cap-subject H-1B petitions, on top of existing fees. The proposal has been issued by the US Department of Homeland Security and is open for public comments for 30 days.
Nasscom said the H-1B programme was originally designed to help US employers address temporary shortages of specialised skills. The organisation said the programme should be considered in the context of the changing employment landscape, particularly as Indian technology companies have expanded their hiring within the US.
According to Nasscom, the number of H-1B employees working for Indian technology companies in the US has declined significantly over the past five years as companies have increased local recruitment.
The industry body also highlighted the contribution of Indian technology companies to the US skills and education ecosystem. It said the sector has invested more than $1.1 billion in strengthening STEM education and skills development, working with more than 130 US universities and colleges. These initiatives have reached around 2.9 million students and supported the upskilling of more than 255,000 employees.
Under the proposed US rules, the additional fee would apply to cap-subject H-1B petitions, including applications covered by the advanced-degree exemption. Employers would be required to pay the amount when submitting the petition, in addition to other applicable government charges.
The US Department of Homeland Security estimates that the proposed fee could generate approximately $8.8 billion annually, based on an estimated 85,000 cap-subject petitions each year. The government has said the funds would help cover costs associated with immigration processing, fraud prevention, security screening, technology upgrades and record management.
The H-1B programme currently provides 65,000 regular visa slots each year, along with an additional 20,000 places for foreign nationals holding a qualifying master’s degree or higher from a US institution.
For Indian technology companies and professionals, the proposed fee increase could raise the cost of deploying specialised talent to the US. However, the longer-term impact will depend on the final form of the regulation, the outcome of the public consultation process and how employers adjust their hiring and workforce strategies.
Nasscom’s continued engagement with policymakers and other stakeholders is expected to remain important as the US considers the proposed changes.
