Trump’s $100K H-1B visa fee sparks concern for Indian IT firms
MUMBAI, INDIA — American Depositary Receipts (ADRs) of major Indian IT companies Infosys and Wipro slid on Friday after the Trump administration announced plans to impose a $100,000 annual fee per H-1B visa.
The proposed policy, part of a broader immigration overhaul, could have a profound impact on technology firms that rely on foreign skilled workers.
Infosys, Wipro ADRs slide on H-1B visa proposal
In intraday trade, Infosys ADRs declined by as much as 7.5% to $16.24, before finishing 3.14% lower at $16.97, and Wipro ADRs decreased by 3.5% to $2.76.
The market response highlights investor concerns about increased labor expenses and potential disruptions to staffing frameworks that rely on Indian and other foreign talent.
India made up 71% of all H-1B approvals last year, underscoring the country’s central role in filling vital tech jobs in the United States.
The White House says the steep fee is meant to encourage companies to hire locally. U.S. Commerce Secretary Howard Lutnick was quoted in a report urging firms to focus on training American graduates rather than bringing in foreign workers.
“If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs,” said Lutnick.
According to the Reuters report, supporters of the program counter that H-1B visas fill critical skill gaps. Tesla Chief Executive Officer Elon Musk, himself a former H-1B visa holder, emphasized that the program helps U.S. companies remain competitive globally.
$100K H-1B fee could reshape global tech hiring
The annual cost of $100,000 may put a significant amount of pressure on the budgets of businesses, particularly those that are smaller tech companies and startups, should it be given the go-ahead. This could lead to the outsourcing of high-value labor to other countries.
Hundreds of H-1B approvals for 2025 have been secured by major U.S. firms, including Amazon, Microsoft, and Meta, demonstrating their reliance on talent from around the world.
The regulation could have an impact on the way that worldwide staffing is managed in the outsourcing industry. Infosys and Wipro, which are both Indian IT exporters, may accelerate the process of outsourcing projects to maintain costs at a manageable level.
Meanwhile, U.S. businesses may increasingly turn to remote work arrangements to obtain international talent without having to go through the H-1B process. For investors and industry observers, the decision suggests a potential rebalancing of domestic recruiting objectives versus worldwide operations plans.
