H1B Visa Fee Hike Triggers IT Stock Sell-Off; Experts See Long-Term Gain For India
The sell-off came as markets reacted to the increased financial burden on companies hiring skilled Indian professionals through the H-1B route.
Published : September 20, 2025 at 3:33 PM IST
By Saurabh Shukla
New Delhi: Indian IT stocks took a sharp hit on Friday, September 19, in US markets, following reports that President Donald Trump signed a proclamation imposing a hefty $100,000 annual fee on H-1B visa petitions. Infosys ADR was down by 3.41 per cent, Cognizant Technology Solutions dropped close to 4.75 per cent, and Wipro Limited slipped 2 per cent during the day’s trading in the US market. The sell-off came as markets reacted to the increased financial burden on companies hiring skilled Indian professionals through the H-1B route.
The visa fee hike directly threatens the cost-effective staffing model long used by Indian IT firms for U.S. projects. With the H1B program already under policy pressure, the latest financial blow adds a new layer of uncertainty for the sector. While Indian companies have been gradually increasing local hiring in the US, the sudden spike in visa costs is expected to weigh on margins and force a strategic rethink in overseas operations.
Short-Term Pain
Experts believe the new H1B visa fee will create short-term challenges for Indian IT firms, with a potential 10 to 15 per cent fall in IT stocks. However, in the long run, it could benefit India as more skilled professionals return and US companies are forced to outsource more work to India.
Stock market expert Ambareesh Baliga told ETV Bharat that while there has already been a slight dip in some stocks, we can expect a sharper fall in IT stocks when the Indian markets open on Monday. According to him, this drop could be anywhere between 10 to 15 per cent, and if not immediately, it will definitely show within the next two to three days.
Explaining the reason behind this, he said the cost of US visas has skyrocketed, making it difficult for companies to apply for new ones or even renew the existing ones. As a result, many employees may be forced to return to their home countries.
He further added that within a few days, things will start becoming clearer on how work will continue under these new circumstances. In the US, people generally don’t prefer travelling far for work. Indian professionals were helping maintain smooth operations without any cultural or work-related issues. Now, without them, especially in the IT sector, things are bound to become more challenging.
"Eventually, the US will have no choice but to outsource more work, either to India or another country. So while this situation might create short-term challenges for India, in the long run, it’s likely to work in our favour," he added.
Opportunity For India
Managing Director at the country's leading recruitment firms, Sunil Goel, told ETV Bharat that this move is going to impact individuals the most, especially those who go to the US for studies or to upgrade their skills. However, in today’s world, there are plenty of alternative options available, and much of this can now be done from India itself. In the short term, this decision will certainly affect Indian companies, but gradually, as the US starts facing a shortage of skilled professionals, a lot of that work will inevitably shift to countries like India.
He also pointed out that while there will definitely be a drop in earnings for Indians currently working in the US, it’s unlikely to have a major impact on India’s foreign currency inflow. The reason is simple: the cost of living in the US is very high, so after covering their expenses, whatever money people send back to India isn't a huge amount in dollar terms.
One upside of this move is that many skilled professionals might return to India, and as more US companies outsource their work here, it could lead to more job opportunities for Indians.
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