H-1B visa fee hike: Govt assessing the situation with Nasscom

New Delhi, Sep 20
The government and the IT industry’s apex body, Nasscom, are assessing the fallout of the US administration’s decision to impose a $100,000 annual fee on H-1B visas from September 21.

According to government sources, New Delhi is in touch with the Indian Embassy in Washington, DC, and is also holding consultations with the leading tech industry body Nasscom here.

The new H-1B costs are expected to affect the US companies the most, as these rely heavily on Indians for specialised and high-skilled tech roles.

According to experts, this may also trigger a new wave of global capability centres (GCCs) in India to meet the shortage of talent in the US after the new visa fee rule.

Indians hold the highest number of H1-B visas, followed by China.

Meanwhile, GCCs are preparing for a talent expansion in India, with 48 per cent of GCCs planning to increase their workforce beyond 2024 levels.

Finance Minister Nirmala Sitharaman said this week that India today hosts nearly half of the world's Global Capability Centres (GCC), which are now at the forefront of innovation, R&D, and leadership creation.

"GCCs will consolidate India’s leadership in innovation and job creation and with the right policies, infrastructure, and skilling, this sector can define our journey to Viksit Bharat 2047,” she said while addressing the Special Ministerial Plenary and Report Back at the 'CII GCC Business Summit'.

The US-based companies have traditionally accounted for nearly 70 per cent of total GCC absorption since 2021. In recent years, GCCs from the UK, EMEA, and APAC regions have also expanded their footprint, steadily strengthening their presence in India.

India has approximately 1,700 GCCs, with a projection to reach over 2,100 by 2029-2030.

According to CP Gurnani, Co-founder and Chief Executive Officer, AIonOS, over the past several years, the Indian IT firms have significantly reduced their reliance on the H-1B visa, with filings dropping by over 50 per cent.

"This shift is a result of our ongoing strategy to hire more locally, invest in automation and enhance our global delivery models. While visa fees may change, the impact on our business will be minimal, as we’ve already adapted to this evolving landscape," he mentioned.