The latest on the H-1B shocker and its impact on Indian tech sector – Nasscom, the Apex trading association and advocacy group for the tech sector, reitererated that this move will have limited impact on the Indian tech sector as IT firms have been steadily reducing their dependence on H-1B visas. The Nasscom report noted that the number of H-1B visas issued to top Indian firms fell to 10,162 in 2024 from 14,792 in 2015. For the top 10 Indian IT employers, H-1B workers now make up less than 1% of their overall workforce.
Indian IT firms reduce reliance on H-1B visas
Nasscom pointed out that Indian over the years, companies have increased local hiring and invested heavily in upskilling programs in the US. The industry has already spent more than $1 billion on training and local recruitment.
Fee applies only to new applications from 2026
Nasscom also noted that as the $100,000 annual fee on H-1B visas will not apply to existing visa holders and it will be charged as a one-time fee on fresh applications starting in 2026. It will “give companies time to further step up skilling programs in US and enhance local hiring.” the report noted.
“The clarification ensures there is no disruption for current visa holders and gives companies time to prepare for the new rules,” Nasscom added.
Nasscom sees limited impact of new H-1B fee
Nasscom believes the new fee will only have a limited effect on the sector as H-1B visas, it said, represent a very small portion of the US workforce but continue to play an important role in bridging skill gaps. Salaries for H-1B workers are also at par with local hires.