Daijiworld Media Network - New Delhi

New Delhi, Sep 20: The Indian government and IT industry apex body Nasscom are closely evaluating the implications of the US administration’s new $100,000 annual fee on H-1B visas, set to take effect from September 21.

According to government sources, consultations are underway between New Delhi and the Indian Embassy in Washington, DC, with parallel discussions involving Nasscom to assess potential industry-wide impacts.

The move is expected to hit US-based companies the hardest, as they continue to rely heavily on Indian tech professionals to fill specialised, high-skilled roles. Indian nationals account for the largest share of H-1B visa holders, followed by Chinese nationals.

India Eyes GCC Growth Amid U.S. Talent Squeeze

Experts suggest that the steep visa fee hike may accelerate the expansion of Global Capability Centres (GCCs) in India, as companies look for alternatives to bridge the talent gap emerging in the US tech sector.

In fact, nearly 48% of GCCs in India are already planning to increase their workforce beyond 2024 levels.

Finance Minister Nirmala Sitharaman, speaking at the CII GCC Business Summit, underlined the sector’s growing significance:

“India today hosts nearly half of the world’s GCCs. With the right policies, infrastructure, and skilling, this sector can define our journey to Viksit Bharat 2047,” she said during her address at the Special Ministerial Plenary.

India currently has around 1,700 GCCs, and this number is projected to rise to over 2,100 by 2029–30. While US-based firms have traditionally contributed to 70% of GCC presence, firms from the UK, EMEA, and APAC regions are also rapidly expanding their operations in India.

Industry Already Adapting to Visa Disruption

Veteran tech leader CP Gurnani, Co-founder and CEO of AIonOS, noted that Indian IT firms have already reduced dependency on the H-1B visa route, with applications falling by over 50% in recent years.

“This shift is part of a broader strategy to hire locally, invest in automation, and enhance global delivery models. While changes in visa fees may affect some, the overall impact on Indian firms will be minimal,” Gurnani said.

As the situation unfolds, both the Indian government and industry leaders are expected to continue strategic consultations, aiming to protect India’s strong position in the global IT and innovation ecosystem while encouraging further onshore investment and talent development.