US $100K H-1B Visa Fee Sparks Indian IT Sector Revenue Impact, Industry Uncertainty

The Trump administration's introduction of a one-time $100,000 fee on new H-1B visa applications has created significant uncertainty for Indian IT professionals and companies, as these visas are vital for staffing US operations. While major Indian IT firms like Infosys, TCS, and HCL could face a modest revenue impact of up to 1.14%, smaller tier-2 companies might experience more pressure, with potential EBIT margin reductions and cautious hiring strategies. The sudden policy change led to panic among Indian workers abroad, many rushing back to the US to avoid the fee, despite later clarifications that the fee is not annual and does not apply to current visa holders or renewals. The fee hike is prompting Indian IT companies to consider alternative strategies such as increasing offshoring or shifting operations to other countries like Canada and Mexico, although aggressive offshoring could prompt retaliatory measures. Additionally, the Trump administration has launched the Trump Gold Card program, offering wealthy investors a pathway to US residency via significant financial contributions, signaling a shift in immigration policy focused on investment. Overall, the new visa fee and related policies add to the existing challenges for the Indian IT sector amid global economic uncertainties and trade tensions.