Nuvama has said the US government’s decision to impose a $100,000 fee on H1B visa applications effectively makes them uneconomical for Indian IT companies, given that the current median H1B salary ranges between $80,000 and $120,000. With the fee matching or exceeding salary levels, firms are unlikely to file fresh applications except for absolutely critical and irreplaceable job profiles.
The brokerage estimated the margin impact at around 50–150 basis points, depending on the size of each firm’s H1B-dependent workforce. However, it emphasised that this is more of a theoretical concern, as companies will sharply reduce their H1B usage in response.
Nuvama said IT services providers are expected to pivot more aggressively toward local hiring and near/offshoring, ensuring the long-term impact remains contained.
Disclaimer: The views and recommendations made in this article are those of Nuvama. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.