Synopsis : The US has raised H-1B visa fees sharply, imposing a $100,000 charge per application. While Indian IT majors like TCS may absorb the impact, American firms like Tesla could face steeper challenges.
In a dramatic move, the United States has hiked H-1B visa fees by $100,000 per application, effective from September 21, 2025, for a year. Announced by President Donald Trump, the measure is aimed at reducing dependence on foreign workers and boosting opportunities for American talent.
Commerce Secretary Howard Lutnick said the hike would curb “systemic abuse” of the visa system, alleging it has been used to undercut local wages and push Americans out of IT jobs. With Indians making up more than 70% of H-1B holders, the changes could weigh heavily on the Indian diaspora and global tech hiring practices.
For India’s IT giants like TCS, which apply for 3,000–4,000 H-1B visas annually, the hike is less threatening. TCS CEO Krithi Krithivasan has stressed that H-1Bs form only a small part of their global workforce, and work can be redistributed to India if needed. Infosys and Wipro, however, saw their ADRs fall by over 3% and 2% in reaction to the news.
Tesla, by contrast, faces a sharper blow. The automaker, accused in lawsuits of preferring visa holders over Americans, employs 1,355 H-1B workers while having laid off over 6,000 US employees. The added cost could significantly raise Tesla’s hiring expenses, especially as demand for AI, cloud, and software specialists surges in the US.
Analysts suggest the hike may limit job mobility for foreign professionals and deter US firms from sponsoring visas, potentially pushing Indian tech talent toward Canada, the UK, or the Middle East. Despite the setback, leaders like Elon Musk have defended H-1Bs, crediting them for helping build Tesla, SpaceX, and America’s innovation ecosystem.
As the rule comes into effect, both Indian IT firms and US tech giants will need to recalibrate strategies to navigate the higher costs and tighter visa policies.
Disclaimer : This article is for informational purposes only and should not be considered financial, legal, or immigration advice. Readers are advised to consult professionals before making decisions based on policy updates.
Would you like me to also create a quick “impact at a glance” table (India IT vs US tech firms) to make the article more engaging?
