By Lakshmana Venkat Kuchi
Is it a silver lining or there is a blessing in disguise for the Indian IT sector that appears to have been hit by an avalanche in the form of a hefty hike in H1B Visa fees for America from September 21?
IT body, Nasscom is working closely with the government to assess the fall out of the annual fee hike on H-1B visas, which in preliminary analysis showed that the move will affect the US companies that employ Indians for their skillsets.
Now, if sending workers or hiring workers of Indian origin becomes expensive is there a possibility that some or most of that work can flow out the US and trigger a bigger expansion of GCCs in India?
This is one of the possibilities being anticipated by IT experts, who feel that GCCs can absorb more skilled workers here in India itself. India already hosts roughly half of GCCs of the world. India has approximately 1,700 GCCs, with a projection to reach over 2,100 by 2029-2030.
Meanwhile, Nasscom has noted in a statement that though some IT companies here would be affected, India and Indian companies have over the years been steadily reducing the number their reliance on Visas through increased local hirings. These companies also follow all necessary governance and compliance in the US H1B processes, pay prevailing wages and contribute to the local economy and innovation partnerships by the local academia and start ups.
The industry body said the timeline, however, of application of new rules was a concern. A one-day deadline creates considerable uncertainty for businesses professionals, and students across the world. The industry body will be continuously monitoring the situation and assess the situation as it develops.
CP Gurnani, Co-founder and Chief Executive Officer, AIonOS, said, “Over the past several years, the Indian IT firms have significantly reduced their reliance on the H-1B visa, with filings dropping by over 50 per cent. This shift is a result of our ongoing strategy to hire more locally, invest in automation, and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we’ve already adapted to this evolving landscape.”
Another expert described the US move as restrictionist.
“President Trump’s September 19, 2025, proclamation imposes a $100,000 annual H-1B visa fee starting September 21, 2025, hiking costs 100x to curb “abuse” and prioritize high-skill workers, severely impacting Indian IT firms like TCS and Infosys, which sponsored 13,396 visas in 2025. Facing a $1.34B fee burden, that is 10% of major firms’ profits, the IT sector risks profit erosion, job losses, and reduced U.S. client demand, potentially spurring offshoring but limiting global mobility,” said Srinivasan Balakrishnan, Director, Strategic Engagements and Partnerships, Indic Researchers Forum, a Delhi-based security think tank.
“As a strategic affairs analyst, I call it a restrictionist, warning of talent shortages and weakened U.S. innovation, while it may boost India’s domestic tech scene by curbing brain drain. More than India, this visa fee negatively impacts the US economy which specifically depends on the IT services sector as their major contributor to their economy,” he said.
Sanjay Tripathy, CEO & Co-Founder BRISKPE, a cross border payments platform felt that the American move was akin to it building a wall against global talent. “By pricing out the world’s best doctors, engineers, and innovators, the U.S. risks stalling its own engine of innovation. Instead, this will accelerate India’s rise as the hub for research, patents, and startups. Cities like Bengaluru, Hyderabad, Pune, and Gurugram are ready to absorb this talent and channel it into India’s growth story,” he said.
“America may be closing its doors, but for India this is an unprecedented opportunity to harness its brightest minds and power the journey towards Viksit Bharat. What the U.S. loses in innovation, India stands to gain in progress and global leadership,” Tripathy said.”
“The recent announcement has understandably raised some concerns from students and parents. However, it is still too early to gauge the long-term impact on Indian students wanting to study in the US. It is important to know that the students who are pursuing a U.S. education at the moment will look at H-1B pathways typically a few years down the line, while this proclamation has been proposed for next 12 months only as of now,” said Piyush Kumar, Regional Director, South Asia, Canada and Latin America (LATAM), IDP Education.
“ The U.S. continues to be one of the most popular study abroad destinations for Indian students, particularly in STEM fields, with 4 out of top 10 universities in the QS World University Rankings 2026. While students may also explore options such as Canada, Australia, the UK, New Zealand, the U.S. is expected to hold its position as a preferred choice for Indian students seeking global exposure and academic excellence,” Piyush Kumar added.
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