Trump’s H-1B Visa Fee Hike May Reshape Indian IT Strategy, But EPS Impact Likely Muted, Says Motilal Oswal

Over the last decade, Indian IT vendors have reduced their reliance on H-1B visas. With localization drives in the US and higher local hiring, only ~20% of employees are currently based on-site. Of this, 20–30% are on H-1B visas, implying that H-1B holders represent just 3–5% of the active workforce for a typical vendor..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.President Trump has signed an executive order that raises the annual H-1B visa application fee from $1,000 to $100,000 per applicant. This represents a 100x jump and applies prospectively to new applications. The program’s mechanics remain the same otherwise: employers must still sponsor foreign workers for roles requiring specialized skills, but now at a sharply higher cost. Since H-1B lotteries and petitions are typically run in Q4–Q1, the first impact would likely be seen in FY27 petitions. We note that situation is still evolving and may change drastically, however we also observe following implication for Indian IT:.Implications for Indian IT services Shrinking H-1B dependence: Over the last decade, Indian IT vendors have reduced their reliance on H-1B visas. With localization drives in the US and higher local hiring, only ~20% of employees are currently based on-site. Of this, 20–30% are on H-1B visas, implying that H-1B holders represent just 3–5% of the active workforce for a typical vendor. .Big tech vs IT services:While the H-1B program is often portrayed as an ‘India IT’ visa channel, in practice, Big Tech companies (Google, Amazon, Microsoft, Meta, etc.) account for a larger share of fresh applications than Indian IT.For IT vendors, localization and subcontracting are already baked into their delivery models, making them relatively better placed to adjust..Timing of impact: Visa applications for FY26 are already locked in. The $100,000 fee will start to impact from FY27 onwards, when new petitions are filed..Click on the attachment to read the full report:.US Crackdown On H1-B Visa To Fast-Track AI Adoption, Believes Former Tech Mahindra CEO.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Trump’s H-1B Visa Fee Hike May Reshape Indian IT Strategy, But EPS Impact Likely Muted, Says Motilal Oswal

Visa applications for FY26 are already locked in, the $100,000 fee will start to impact from FY27 onwards, when new petitions are filed.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP