Nasscom says US' new H-1B visa policy to impact Indian engineers, IT cos

The US' decision to introduce an annual fee of $100,000 on every H-1B visa application will negatively impact Indian technology professionals working in the country and IT services companies as business continuity will be disrupted, IT industry body Nasscom said on Saturday.

“It will impact Indian nationals that are on H-1B visas working for global and Indian companies. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments. Companies will work closely with clients to adapt and manage transitions,” it said in a statement.

Indians have been the biggest beneficiary of the H-1B visa system; being sent onshore by companies such as TCS, Infosys, and Wipro to work for US clients and then eventually getting a green card to settle in the US. More than 70 per cent of all H-1B visas are obtained by Indians.

Indian IT companies have, however, reduced their dependence on this visa over the years and have stepped up local hiring by engaging with many US universities to hire students or professionals equipped with STEM (science, technology, engineering, mathematics) degrees. Yet demand continues to surpass supply, posing a challenge.

“While we are reviewing the finer details of the order, adjustments of this nature can potentially have ripple effects on America’s innovation ecosystem and the wider job economy,” Nasscom cautioned.

It also added that a one-day deadline to implement the order is also concerning because it creates considerable uncertainty for businesses, professionals, and students across the world. The order comes into force from September 21.

“Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”

Amitabh Kant, former G20 sherpa and former CEO of Niti Aayog, said on X that the US decision will choke the country’s innovation, and turbocharge India’s.

“By slamming the door on global talent, America pushes the next wave of labs, patents, innovation and startups to Bangalore and Hyderabad, Pune and Gurgaon. India’s finest doctors, engineers, scientists, innovators have an opportunity to contribute to India’s growth & progress towards #ViksitBharat. America’s loss will be India’s gain,” he wrote.