Sat Sep 20 13:01:34 UTC 2025: ## India’s Nasscom Warns of “Ripple Effects” from New US H-1B Visa Fee
**Washington D.C.** – India’s National Association of Software and Service Companies (Nasscom) has voiced strong concerns over the United States’ sudden implementation of a new $100,000 annual fee for H-1B worker visas. The trade body, representing India’s $283 billion IT and business process outsourcing industry, warned that the one-day deadline for implementing the fee, which went into effect Sunday, could have significant negative consequences.
Nasscom argues the abrupt rollout creates “considerable uncertainty” for businesses, professionals, and students and could disrupt ongoing projects for Indian technology firms operating in the US. The H-1B visa program allows US companies to sponsor foreign workers with specialized skills, primarily in science, engineering, and computer programming. India is the largest beneficiary of these visas, accounting for 71% of approvals last year.
The new fee, announced alongside a $1 million “gold card” residency program, is expected to face legal challenges. Nasscom believes the policy could trigger “ripple effects” on the US innovation ecosystem and global job markets, forcing companies to make significant adjustments due to the increased costs. The organization emphasized that policy changes of this magnitude require adequate transition periods to minimize disruption.
While US officials claim the fee will ensure companies sponsor only the most highly skilled workers, critics argue it will significantly transform the H-1B system, which was created in 1990 and awards 85,000 visas annually through a lottery.
Tech entrepreneurs, including Elon Musk, have warned against targeting the H-1B program, citing a shortage of domestic talent to fill crucial tech sector positions. Some analysts fear the fee could force companies to move high-value work overseas, potentially hindering the US’s competitiveness in the artificial intelligence race against China, which currently holds a distant second place in H-1B visa usage.
Following the announcement, major US tech firms like Microsoft, JPMorgan, and Amazon reportedly advised their H-1B visa holders to remain in the US. This new fee represents the Trump administration’s most significant attempt to overhaul the temporary employment visa system as part of a broader crackdown on immigration.
South Korea’s foreign ministry has also stated it will assess the impact of these measures on its companies and professionals operating in the US and engage in communication with US officials on the matter.
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