H-1B Cost Rise: How It Affects Indian IT Firms? Nasscom President Weighs In

Recent adjustments to the H-1B visa system in the United States have stirred debate across the global technology sector, but their impact on major Indian IT companies is expected to be minimal, Economic Times reported quoting according to Rajesh Nambiar, president of industry body Nasscom.

Large firms have gradually reduced their dependence on H-1B visas over several years, softening the effect of policy changes coming from Washington, Nambiar told Economic Times.

Students already in the US on Optional Practical Training (OPT) extensions will be exempt from this charge, a development Nambiar described as a relief to both individuals and employers.

A further shift in the H-1B lottery system, which now gives priority to specialised and high-salary roles, is set to make visas more expensive. Even so, Nambiar said companies will continue to use the programme for specific niche requirements.

Beyond the immediate visa-related concerns, Nambiar pointed to deeper structural changes underway in the technology sector. Rapid AI adoption is reshaping workforce needs and prompting companies to re-evaluate the skills required for future roles.

Many capabilities that were valuable in the past are now becoming obsolete, making upskilling and reskilling essential. He emphasised India’s scale advantage and argued that strong collaboration among industry, academia, and government could position the country as a global hub for AI talent.

Startups, especially those in the AI space, are feeling the pinch more acutely. Tighter visa rules and fierce competition for specialised talent have created significant hurdles. Nevertheless, Nambiar noted that local hiring, strategic partnerships, and stronger engagement with US-based networks are helping young companies adapt to the new landscape.