The new H-1B visa rules could have ripple effects on America’s innovation ecosystem and the wider job economy, said Indian IT industry body Nasscom on Saturday. The statement comes in the backdrop of a new executive order by the Trump administration hiking the fees for H-1B visas to $100,000.
The decision will also impact Indian nationals on H-1B visas working for global and Indian companies, Nasscom said in a statement. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects, which may require adjustments, the industry body said.
In anticipation of the hit, American depository receipts (ADRs) of Infosys and Wipro dropped nearly 4% on Friday.
“India and India-centric companies have been steadily reducing their reliance on these (H-1B) visas through increased local hiring in recent years. These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups,” Nasscom noted.
The top six Indian IT services companies — Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree — had reduced H-1B filings by an average of 46% over five years, according to US Citizenship and Immigration Services (USCIS) data. While global IT consultants have followed suit, Big Tech companies — Amazon, Microsoft, Meta, Apple, and Google — have consistently remained the top five sponsors.
TCS had the second-highest count of H-1B employees on its payroll in fiscal year 2025 after Amazon, but only on account of its 600,000-strong global workforce.
The deadline for the new H-1B rules, taking effect from 12:01 am on September 21, is also a concern, Nasscom said. “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”
Amazon and Microsoft have asked their H-1B employees and their dependents holding H-4 visas to return to the US before the deadline.
What does the H-1B executive order say
The "Restriction on Entry of Certain Nonimmigrant Workers" mandates employers to show proof of payment of the $100,000 fee when filing H-1B petitions. These rules take effect on September 21.
The order proclaimed that outsourcing firms have overtaken the H-1B system to displace American workers, depress wages, and even create national security risks. It attributed the rise of the foreign workforce from 17.7% in 2000 to over 26% by 2019 to the proliferation of H-1B employees.
"The high numbers of relatively low-wage workers in the H-1B program undercut the integrity of the program and are detrimental to American workers' wages and labour opportunities, especially at the entry level, in industries where such low-paid H-1B workers are concentrated. These abuses also prevent American employers in other industries from utilising the H-1B programme in the manner in which it was intended: to fill jobs for which highly skilled and educated American workers are unavailable," the executive order read.
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The decision will also impact Indian nationals on H-1B visas working for global and Indian companies, Nasscom said in a statement. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects, which may require adjustments, the industry body said.
In anticipation of the hit, American depository receipts (ADRs) of Infosys and Wipro dropped nearly 4% on Friday.
“India and India-centric companies have been steadily reducing their reliance on these (H-1B) visas through increased local hiring in recent years. These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups,” Nasscom noted.
The top six Indian IT services companies — Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree — had reduced H-1B filings by an average of 46% over five years, according to US Citizenship and Immigration Services (USCIS) data. While global IT consultants have followed suit, Big Tech companies — Amazon, Microsoft, Meta, Apple, and Google — have consistently remained the top five sponsors.
TCS had the second-highest count of H-1B employees on its payroll in fiscal year 2025 after Amazon, but only on account of its 600,000-strong global workforce.
The deadline for the new H-1B rules, taking effect from 12:01 am on September 21, is also a concern, Nasscom said. “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”
Amazon and Microsoft have asked their H-1B employees and their dependents holding H-4 visas to return to the US before the deadline.
What does the H-1B executive order say
The "Restriction on Entry of Certain Nonimmigrant Workers" mandates employers to show proof of payment of the $100,000 fee when filing H-1B petitions. These rules take effect on September 21.
The order proclaimed that outsourcing firms have overtaken the H-1B system to displace American workers, depress wages, and even create national security risks. It attributed the rise of the foreign workforce from 17.7% in 2000 to over 26% by 2019 to the proliferation of H-1B employees.
"The high numbers of relatively low-wage workers in the H-1B program undercut the integrity of the program and are detrimental to American workers' wages and labour opportunities, especially at the entry level, in industries where such low-paid H-1B workers are concentrated. These abuses also prevent American employers in other industries from utilising the H-1B programme in the manner in which it was intended: to fill jobs for which highly skilled and educated American workers are unavailable," the executive order read.
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