India and the country’s top IT industry body, Nasscom, are closely evaluating the impact of the United States government’s move to impose a steep annual fee of $100,000 on H-1B visas, effective September 21. The decision, which targets one of the most widely used visas for high-skilled workers, is expected to have wide-ranging consequences for the technology sector globally.
According to official sources, consultations are underway between New Delhi, the Indian Embassy in Washington, DC, and Nasscom to understand the scope of the changes and prepare an adequate response. The US remains the largest market for India’s IT and technology services, and any disruption in mobility or costs carries potential consequences for companies on both sides.
The immediate impact is likely to be felt by American firms, many of which rely heavily on Indian professionals for specialised roles in software, data, and emerging technologies. With the new fee structure, maintaining this workforce could become significantly more expensive, pushing companies to explore alternatives.
Experts suggest one likely outcome is the acceleration of Global Capability Centres (GCCs) in India. GCCs, which serve as offshore hubs for global companies, allow firms to consolidate operations, reduce costs, and tap into the country’s skilled talent base. Already, nearly half of the world’s GCCs are based in India, and the new H-1B fee rule may further shift investments toward expanding this model.
Finance Minister Nirmala Sitharaman, speaking earlier this week, emphasised that GCCs are at the forefront of innovation, research, and leadership creation in India. She noted that with the right infrastructure, policies, and skilling initiatives, GCCs could play a defining role in India’s journey to Viksit Bharat 2047. The statement highlights how global changes in talent mobility could ultimately strengthen India’s domestic growth story.
Recent industry surveys support this outlook. Nearly 48 percent of GCCs have indicated plans to expand their workforce beyond 2024 levels, underscoring the confidence in India’s ability to meet global demand. The US continues to dominate GCC absorption, accounting for about 70 percent since 2021, though companies from the UK, EMEA, and APAC regions have also increased their presence steadily. Currently, India hosts approximately 1,700 GCCs, with projections suggesting that the number will cross 2,100 by 2029-2030.
Industry leaders also point to the declining reliance of Indian IT firms on H-1B visas. Over the past several years, filings have dropped by more than 50 percent, reflecting a strategic shift towards hiring more locally in overseas markets, investing in automation, and strengthening global delivery models. This trend has reduced vulnerability to policy shifts in the US.
According to CP Gurnani, Co-founder and CEO of AIonOS, Indian IT companies have already adapted to evolving visa landscapes by diversifying their strategies. He highlighted that while costs may rise, the overall impact on business will remain minimal due to reduced dependency on visa-driven operations.
For the US, however, the steep hike in fees could make it harder to sustain current levels of skilled foreign workforce. With Indians holding the highest share of H-1B visas, followed by China, the fee increase could alter hiring dynamics and reshape global talent flows.
As the situation unfolds, the collaboration between the Indian government and Nasscom will be critical in ensuring that the interests of the industry are safeguarded. The challenge lies in balancing short-term disruptions with long-term opportunities, particularly in harnessing India’s growing role as a global technology hub.
While uncertainty surrounds the new US visa framework, the shift may ultimately accelerate India’s emergence as the preferred destination for global innovation, talent, and capability centres, strengthening its position in the global digital economy.
