Trump’s $100,000 H-1B Visa Fee Could Push Multinationals to Hire More in India, Encouraging Local Innovation

President Trump’s proclamation on September 19 indicates that $100,000 fee on the H-1B visas will hit US-based multinationals due to the hefty fee imposed on H-1B visas by the Trump administration. This move could amplify hiring in India instead of US to avoid these high visa costs. at either their third-party service providers, which are the domestic IT services firms, or at their own global capability centres (GCCs) based in the country, experts told ET.

The increased H-1B visa expenses could hinder the entry of skilled foreign workers into the US. This move would also lead to added costs and margin pressures. However, Indian IT service providers and GCCs could benefit from this change. Over time, this could lead to more job opportunities in India and filling the skill gap in the country in the long term as some skilled workers would prefer staying in India rather than going to the US.

To steer clear of any confusion, US press secretary Karoline Leavitt clarified by writing a post on X on September 20 that it was not an annual fee but a one-time fee that applied only to the petition. She added that those who already hold H-1B visas and are currently outside the country would not be charged $100,000 to re-enter.

US President Donald Trump had signed a proclamation on September 19, imposing an annual fee of $100,000 on H-1B visa applications. The fee takes effect on September 21. It is set to expire in a year, but if the government decides that keeping it would benefit the US, it may be extended.

Pareekh Jain, founder and CEO of consultancy firm EIIR Trend told Mint that Indian IT services firms will experience a short term negative impact because every project needs some people on site and the majority off-site.

Experts see this move as a rewarding one as this could accelerate the trend of reverse brain drain—a phenomenon where highly skilled workers return to their home countries after gaining experience abroad.

According to a 2022 World Bank report on global talent migration, more professionals with international experience are opting to remain in India, particularly in the tech and IT industries. More skilled workers may choose to remain in India as a result of the visa fee, which would encourage local innovation and make the global workforce more competitive.