Shares of major Indian IT companies, particularly Infosys and TCS, experienced a decline as the BSE Sensex and NSE Nifty50 opened in negative territory following the announcement from Washington regarding an increase in fees for the H-1B visa program. This program allows numerous Indian tech professionals to work in the United States. The Indian community in the US was notably alarmed by the Trump administration’s recent announcement, revealing that the H-1B visa fee has surged from a previous range of $2,000 to $5,000 to an astonishing $100,000, which is nearly ₹88 lakh in Indian currency.
Reports emerged of travelers at airports like New York’s JFK International Airport hastily abandoning flights to the US, concerned about the prospect of being separated from their families and uncertain about whether they would need to pay the new fee for future entry into the US. The US government later clarified that this fee increase would only apply to new applicants and not to current visa holders. Commerce Secretary Howard Lutnick provided insight into the rationale behind this policy, stating that it was designed to discourage dependence on foreign labor. He noted that large tech firms and other businesses would no longer be able to employ Indian IT workers at a lower cost compared to American employees.
To hire foreign workers, companies would first need to pay the government $100,000 in addition to the employee’s salary. The Indian government expressed concerns about potential humanitarian impacts resulting from this policy, highlighting the disruptions it could cause for families. They have urged the US to address these matters appropriately.
