India has expressed concern over the Trump administration’s sweeping move to increase H-1B visa fees to $100,000 per year, warning that the measure is likely to create humanitarian challenges for families while threatening disruptions across the global technology supply chain.
The new fee, announced Friday and set to take effect from Saturday midnight (0400 GMT Sunday), represents an unprecedented shift in the decades-old program. Until now, companies entering the H-1B lottery paid only a modest registration fee, while approved petitions involved subsequent costs amounting to just a few thousand dollars — a fraction of the new $100,000 price tag.
India has the most to lose. It was the largest beneficiary of H-1B visas last year, accounting for 71% of all approved applications, reflecting how deeply the U.S. program has been woven into the business model of Indian technology giants and the career aspirations of hundreds of thousands of Indian professionals.
“This measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the U.S. authorities,” Foreign Ministry spokesperson Randhir Jaiswal said in a statement.
He added that “all concerned” were still studying the full implications of the change but underlined that both countries have long benefited from skilled worker mobility that fuels “innovation, wealth creation, and economic growth.”
The Trump administration’s decision is consistent with a broader immigration crackdown that began when he first took office, targeting both legal and illegal pathways into the United States. The H-1B program, designed for highly skilled workers in fields such as technology, engineering, and finance, has been one of the most heavily used visa categories by the U.S. tech industry. But critics in Trump’s orbit argue that it allows foreign labor to undercut American workers, a claim the technology sector has repeatedly disputed.
Trump’s move also comes against the backdrop of fraying U.S.-India relations. Last month, he doubled tariffs on imports from India to as high as 50%, citing New Delhi’s continued purchases of Russian oil. Now, with the H-1B overhaul, another critical link between the two countries — labor mobility — has been thrust into uncertainty.
Indian IT services firms like Infosys, Wipro, Tata Consultancy Services, and HCL have for decades relied on H-1B visas to deploy thousands of engineers and programmers to U.S. client sites. Nasscom, India’s powerful IT industry lobby, warned Saturday that the extraordinary hike could “disrupt the global operations of Indian technology services companies,” adding new cost burdens that may force companies to rethink how they serve American clients.
U.S. technology giants that hire foreign talent also face turbulence. Amazon and Microsoft, which employ thousands of H-1B holders, have already advised affected workers to remain in the United States to avoid complications, according to people familiar with the companies’ internal communications. The policy risks destabilizing staffing pipelines that undergird software development, data centers, and cloud services relied on by millions of customers worldwide.
The humanitarian concerns referenced by India are rooted in how H-1B rules shape the lives of families. Many visa holders bring spouses and children to the U.S. under dependent visas, but those visas are tied directly to the worker’s H-1B status. A sudden cost increase of $100,000 per year could lead to fewer visa renewals or new applications, potentially separating families or forcing them to return home unexpectedly.
Over the years, attempts to tighten the H-1B system have sparked fierce debate. In 2017, Trump signed the “Buy American, Hire American” executive order, which sought to make approval standards more stringent. Lawsuits by technology companies and advocacy groups challenged many of those policies, with federal courts often siding against restrictions deemed arbitrary. The new fee structure marks a different approach — not blocking access outright but making the program prohibitively expensive for many.
Analysts say the change could reshape the demographics of H-1B usage. While large corporations with deep pockets may absorb the additional costs, smaller firms — particularly startups that depend on foreign engineers — could be priced out entirely. Some believe that it risks concentrating opportunities in the hands of the biggest players while eliminating the diversity of smaller companies that drive much of the innovation.
India has consistently defended the H-1B program as mutually beneficial, noting that skilled workers from India have been central to Silicon Valley’s rise and to the broader competitiveness of the U.S. technology sector. Jaiswal stressed that policymakers in both countries should weigh these “mutual benefits” carefully, especially given the “strong people-to-people ties” binding India and the U.S.
Still, with President Trump doubling down on immigration reform as a central political theme, the prospects of reversal appear slim. Instead, the policy may accelerate a shift already underway: Indian talent relocating to alternative destinations such as Canada, the United Kingdom, and Australia, where visa regimes remain more affordable and welcoming.
