New Delhi: Industry body Nasscom on Saturday said the US’ move to raise H-1B visa application fee to USD 100,000 will impact India’s technology services companies as business continuity will be disrupted for onshore projects that may require “adjustments”.
The apex body also flagged concerns over September 21 timeline for implementation saying a one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world.
The US move will impact Indian nationals that are on H-1B visas working for global and Indian companies, it said in a statement.
“While we are reviewing the finer details of the order, adjustments of this nature can potentially have ripple effects on America’s innovation ecosystem and the wider job economy,” it said.
India’s technology services companies will also be impacted while business continuity will be disrupted for onshore projects that may require adjustments.
“Companies will work closely with clients to adapt and manage transitions,” it added.
Nasscom drew attention to India and India-centric companies steadily reducing their reliance on these visas through increased local hiring in recent years.
It said 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.
The H-1B workers for these companies by no means are a threat to national security in the US, it asserted.
“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,” it said.
Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption, as per Nasscom.
Nasscom emphasised it has consistently emphasised that high-skill talent is vital to driving innovation, competitiveness, and growth for America’s economy.
This, it said, 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.
“While developments are underway, we will continue to monitor developments closely, engage with industry stakeholders on the potential implications, and seek further clarity on the discretionary waiver process, to be granted by the Secretary of DHS,” Nasscom said.
Indian techies are among the main beneficiaries of the US H-1B visa program, which attracts top talent and expertise from around the globe. The Congressional mandated pool is 650,000 such visas every year, along with an additional 20,000 visas reserved for those who have earned advanced degrees in the US.
The visa fee blow comes at a time when the USD 283 billion Indian IT sector is already rattled by a turbulent business environment in the world’s largest outsourcing market. The sector faces delays in client decision-making amid macroeconomic uncertainties, tariffs and trade wars, geopolitical tensions, and the changing landscape driven by AI.
Adding to the concerns is the legislative threat of the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno, which if passed, will curb outsourcing and promote domestic employment by imposing a 25 per cent levy on payments made by American companies to foreign workers for services benefiting US consumers.
