H-1B hurdle: India gains, US loses?

The recent increase in H-1B visa fees is affecting the career plans of Indian IT professionals, according to Sidd Ahmed, CEO and Founder of VDart Group, a global technology and staffing company headquartered in Alpharetta, Georgia, USA. Founded in 2007, VDart specializes in IT staffing solutions, digital technology services, and consulting across industries such as automotive, healthcare, energy, and banking. Ahmed noted that the rising visa costs are not only creating challenges for companies in hiring skilled talent but are also reshaping the aspirations of professionals who had intended to work in the United States.

The 65,000 Indian professionals figure cited by VDart CEO Sidd Ahmed refers to current aspirants to work in the US under the H-1B programme, not an annual number. The sources do not specify if this includes mid-level professionals, though H-1B typically attracts talent across experience levels.

The H-1B programme, introduced in the early 1990s, initially cost employers around USD 110 (≈ ₹9,500). Ahmed, who began recruiting in 1995, explained that in the early years, the programme primarily brought junior-level talent from India to the US, which contributed to mid-level employment challenges for American professionals. With the rise of IT demand during the Y2K boom in the late 1990s, Indian system integrators expanded operations, and offshoring became a major trend. Ahmed noted that this resulted in a long-standing sentiment that mid-level talent in the US was subsidised by the influx of Indian professionals under the H-1B programme.

Over the years, the H-1B visa application fees varied between USD 2,000 and USD 5,000, depending on the size of the employer and other factors. Effective September 21, 2025, the Trump administration introduced a one-time fee of USD 100,000 for each new H-1B petition. This fee is in addition to existing application charges and applies only to new petitions, not to renewals or current visa holders. The administration is yet to clarify whether the fee will be collected upfront or in installments. The significant increase has raised concerns for Indian IT professionals and companies, as it could impact the hiring of skilled talent under the H-1B programme and affect India’s services sector, which relies heavily on this workforce.

The increased fees are expected to affect hiring strategies of US companies, particularly in technology and IT services, where Indian professionals constitute approximately 71% of all H-1B beneficiaries. Fresh applicants and junior-level professionals may face reduced opportunities as companies adjust to the higher costs. At the same time, India is emerging as an attractive destination, with GCCs and multinational companies offering competitive opportunities locally.

Ahmed concluded that while the H-1B programme once facilitated the movement of talent to the US, the steep increase in fees is now prompting a shift, with Indian IT professionals increasingly pursuing career growth within India rather than abroad. He also noted that students who had planned to study and work in the US under H-1B sponsorship are now reconsidering their strategies, with many opting to complete higher education in India or explore opportunities in countries with more accessible visa policies, such as Canada, Germany, and the UK.