Nasscom Says U.S. Clarification on H-1B Visa Fee Reduces Uncertainty for IT Sector
India’s IT industry body Nasscom on Monday welcomed the U.S. government’s clarification that the newly announced $100,000 fee for H-1B visas will apply only to new applications, not renewals or existing holders. The clarification, it said, eases concerns over business continuity and gives companies time to adjust before the new fee comes into effect in the 2026 application cycle.
The United States is a key market for India’s $283 billion IT sector, which earns about 57% of its revenue from the region. Nasscom noted that while the one-time fee remains prohibitive for new applicants, the decision to limit it to fresh visas significantly reduces uncertainty. The association also pointed out that Indian and India-centric firms have been steadily cutting down their reliance on H-1B visas in recent years.
Nasscom said the industry has been investing heavily in local talent and upskilling, spending over $1 billion in the U.S. to build stronger workforces onshore. “The number of H-1B workers is a mere decimal point of the overall U.S. workforce,” the body added, underscoring that local hiring has increased tremendously.
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