A dramatic new $100,000 annual fee on H-1B visa applications in the United States has sparked alarm across India’s technology sector and raised diplomatic tensions between Washington and New Delhi.

The measure, announced Friday and taking effect at midnight on Saturday, marks President Donald Trump’s most aggressive overhaul of the skilled worker visa program to date.

Nasscom warns of disruption to Indian IT operations

India’s IT industry body Nasscom, which represents the country’s $283 billion technology and business process outsourcing sector, warned on Saturday that the abrupt rollout could disrupt global operations.

The organization said the one-day deadline for implementing the policy created “considerable uncertainty for businesses, professionals, and students across the world.” Nasscom added that the new fee could have ripple effects on the US innovation ecosystem and global job markets, forcing companies to adjust operations to absorb the steep costs.

US tech giants advise employees to stay put

The White House’s announcement triggered an immediate response from Microsoft, JPMorgan, and Amazon, which reportedly urged employees holding H-1B visas to remain in the United States or avoid international travel.

Internal memos reviewed by Reuters show that firms feared the sudden rollout could disrupt project continuity, particularly for Indian nationals who make up the bulk of H-1B holders.

India raises concerns over humanitarian impact

India’s Foreign Ministry warned that the Trump administration’s move would likely have humanitarian consequences, especially for families of skilled professionals working in the United States.

“Government hopes that these disruptions can be addressed suitably by the U.S. authorities,” ministry spokesperson Randhir Jaiswal said. He stressed that both India and the US benefit from skilled worker mobility, which fuels innovation, wealth creation, and economic growth.

Jaiswal added that policymakers in both nations would assess the impact of the decision in light of their “mutual benefits, including strong people-to-people ties.”

Background: India biggest beneficiary of H-1B visas

India accounted for 71% of all approved H-1B applications in 2024, making it the largest beneficiary of the US program. The fee hike, therefore, is expected to hit Indian professionals and companies hardest.

Previously, entering the visa lottery required only a small fee, with subsequent costs amounting to several thousand dollars—just a fraction of the new $100,000 per year charge.

Growing strains in US-India relations

The policy comes amid worsening ties between Washington and New Delhi. Last month, Trump doubled tariffs on Indian imports to as much as 50%, citing New Delhi’s continued purchase of Russian oil.

The visa fee hike risks further straining relations, as it threatens the flow of Indian talent to the US -- a key component of bilateral economic and technological ties.

Trump’s broader immigration crackdown

Since taking office in January, Trump has pursued a wide-ranging crackdown on immigration, targeting both illegal and legal pathways. The overhaul of the H-1B visa program is part of his administration’s effort to reshape temporary employment visas, particularly those used by the tech industry.

For Indian IT firms, the sharp increase in costs could derail ongoing projects in the US, force operational changes, and disrupt lives of thousands of professionals and their families.