H-1B Visa Fee Hike: Nasscom Says Indian Tech Reliance On Visas Reduced

IT industry body Nasscom on Tuesday said the proposed $103,265 increase in H-1B visa fees must be viewed in the context of the programme's original purpose of addressing skill shortages in the US, noting that Indian technology firms have already significantly reduced their reliance on such visas.

In a statement, it noted that Indian companies have steadily expanded local hiring in the US over the past five years.

"The H-1B visa programme has long served an important purpose in addressing short-term skill gaps in the US. It is also important to recognise that, over the past 5 years, the number of H-1B employees of Indian technology companies operating has reduced significantly, as companies have steadily expanded local hiring," Nasscom said.

A proposed increase in visa fees must, therefore, it said, be viewed in the context of the programme's original purpose of enabling access to temporary skills where there is a shortage in the US.

The industry body further pointed out that the Indian technology sector has invested more than $1.1 billion to strengthen the STEM (Science, Technology, Engineering, and Mathematics) pipeline in the US. This initiative involves partnerships with over 130 universities and colleges, impacting 2.9 million students and upskilling more than 255,000 employees.

The US on Monday proposed an additional fee of $103,265 for all H-1B visa cap-subject applications, including those filed by applicants eligible for the advanced degree exemption.

The US Congress currently limits the H-1B visa programme to 65,000 visas a year under the regular cap.

An additional 20,000 visas are available for foreign workers who have obtained a master's degree or higher from a US institution. This is commonly known as the "master's cap".

The new proposal from the Department of Homeland Security comes a month after a federal appeals court rejected a plea to stay a district judge's order overturning the Trump administration's plan to charge a $1,00,000 fee on H-1B visa applications.

The department has invited public comments on the proposal within the next 30 days.