WASHINGTON — U.S. President Donald Trump on Friday signed a sweeping proclamation introducing major reforms to the H-1B visa program, including a new annual US$100,000 fee for each visa application. The move marks one of the most significant overhauls to the program for highly skilled foreign workers since its inception in 1990 and is expected to have major global implications, particularly for India.
The H-1B visa program, which allows 85,000 foreign professionals annually to work in the United States in fields such as science, technology, engineering, and math, has long been dominated by Indian applicants. Indian IT firms such as Tata Consultancy Services, Infosys, Wipro, HCL Technologies, and global outsourcing divisions of IBM and Cognizant account for a large share of the visa recipients, often deploying skilled workers to fill programming, consulting, and IT support roles.
Trump defended the decision, saying the reforms will protect high-paying jobs and ensure that companies hire the “best and brightest.” “I think they’re going to be very happy,” the president said, emphasizing that this move is intended to prioritize American workers and reduce wage suppression.
Industry experts, however, warn that the steep fee hike will have a chilling effect on Indian IT companies, many of which rely heavily on the H-1B program to service U.S. clients. The cost of sending employees to the U.S. for projects could skyrocket, forcing companies to reconsider onshore-offshore models or pass costs onto clients.
Indian trade bodies such as Nasscom are expected to strongly oppose the measure, arguing that the changes will hurt India’s $250 billion IT services industry, which generates a significant portion of its revenue from the U.S. market. Analysts warn that this may also delay technology projects for U.S. corporations and reduce the flexibility of the global workforce.
For Indian professionals seeking long-term employment in the U.S., the reform may further restrict access. With the new fees making applications prohibitively expensive for many smaller firms and startups, competition for fewer H-1B sponsorship opportunities is likely to intensify.
This move could also have a diplomatic ripple effect, as India has historically raised concerns about U.S. immigration and work visa restrictions during bilateral trade talks. New Delhi may seek exemptions or relief measures during upcoming negotiations, given the potential impact on its skilled labor force and the bilateral tech corridor.
Critics in both countries argue that the policy could slow innovation, disrupt projects dependent on global tech talent, and harm the long-standing economic partnership between the U.S. and India in the IT and services sector.