H-1B Visa Fee Increase May Shift Tech Jobs to India, Expert Warns

The proposed additional fee of USD 103,265 on H-1B visa petitions may accelerate the movement of technology jobs from the United States to India-based Global Capability Centres (GCCs), according to economist and former UN advisor Santosh Mehrotra. In an exclusive conversation with ANI, Mehrotra discussed the possible ramifications of the fee, which the US Department of Homeland Security (DHS) has suggested for H-1B petitions subject to the annual cap, including those eligible for the advanced degree exemption.

This new fee, which would be paid at the time of filing in addition to other applicable charges, is estimated by DHS to generate around USD 8.8 billion annually, based on 85,000 H-1B cap-subject petitions. Additionally, visa appointments for applicants worldwide have recently been paused by the US.

Mehrotra noted that the impact of the fee would largely depend on whether companies opt to absorb the cost or pass it onto workers. “It’s a bit going to make life difficult for Indians, but it’s going to make life difficult for everyone. Of course, Indians are the largest group of H-1B visa holders, so it may dampen the interest of companies looking to send Indian workers,” he stated.

However, he emphasized that the consequences would affect more than just Indian workers and IT companies, as a significant portion of H-1B hiring is conducted by US-based firms. “The majority of companies hiring H-1Bs are US companies. The only notable Indian firms are PCS and Tata Consultancy Services, which employ large numbers of H-1B workers. The other major companies are predominantly based in the US and will face negative impacts,” Mehrotra explained.

He indicated that demand for Indian tech workers and software exporters may decline as more American firms establish GCCs in India. “Most American companies are coming to India to create global capability centres. Services that IT firms previously provided from India are now being insourced by large international firms, particularly in locations like Hyderabad, Chennai, and Bengaluru,” he commented.

Furthermore, he suggested that some technology roles that previously necessitated Indian professionals to travel to the US could increasingly be performed from India. For Indian tech professionals seeking international opportunities, Mehrotra advised considering markets beyond the US, including those in Southeast Asia, the Middle East, and Europe.

The H-1B program facilitates US companies in employing foreign workers in specialized, high-skilled occupations and has historically been crucial to the technology sector. The annual statutory limit for new H-1B visas is 85,000, which includes 65,000 regular-cap visas and 20,000 reserved for applicants with advanced degrees from US educational institutions. Among the 65,000 regular-cap visas, 6,800 are designated for nationals of Chile and Singapore.

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