Nasscom Raises Alarm Over $100,000 H-1B Visa Fee, Warns of Disruption to Innovation and Business Continuity

Indian IT body Nasscom calls the steep H-1B visa fee hike a potentially disruptive move for global business, America’s innovation ecosystem, and Indian tech talent, urging for realistic timelines and smoother implementation.

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New Delhi [India], September 21: The Indian IT industry’s apex body Nasscom has voiced deep concern over the White House’s decision to impose a $100,000 annual fee on H-1B visa applications, calling the move disruptive to global business continuity and America’s innovation ecosystem.

The announcement, made on September 19, has sent ripples across the tech sector, particularly in India, where a large share of H-1B visa holders originate. In a strongly worded statement, Nasscom emphasized that while it is still reviewing the finer details of the proclamation, such sweeping changes to the skilled worker visa program could carry far-reaching consequences.

“Adjustments of this nature can potentially have ripple effects on America’s innovation ecosystem and the wider job economy. It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments,” the statement read.

The decision, signed off by US President Donald Trump, is being pitched as a major overhaul of the H-1B visa programme, aimed at curbing alleged misuse by outsourcing firms. The administration argues the system has been manipulated to replace American workers, suppress wages, and pose potential national security concerns.

However, Nasscom strongly criticized the one-day timeline for implementation, calling it “unrealistic and disruptive.”

“The timeline for implementation (anyone entering the U.S. after 12:01 a.m., September 21) is also a concern. 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 organizations and individuals to plan effectively and minimize disruption,” Nasscom said.

The industry body also defended Indian IT firms, noting they have already reduced dependence on the H-1B visa route by ramping up local hiring in the US. It added that Indian companies fully comply with governance and wage requirements, contribute to the US economy, and actively collaborate with universities and startups.

“The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom stressed.

At a time when technologies like Artificial Intelligence and frontier innovations are reshaping global competitiveness, Nasscom warned that restricting access to high-skilled talent could weaken America’s position.

“High-skill talent is vital to driving innovation, competitiveness, and growth for America’s economy. This is especially critical at a time when advances in AI and other frontier technologies are set to define global competitiveness. High-skill talent will remain central to sustaining America’s innovation leadership and long-term economic strength,” it noted.

Nasscom confirmed it will continue to monitor developments closely, engage with stakeholders, and seek clarity on the discretionary waiver process to be administered by the US Department of Homeland Security.