In order to chase and achieve the 'American Dream' and acquire global work experience, the H-1B visa has always been the wings for millions of Indians. It has provided a bridge for India's pool of STEM professionals to reach remunerative job positions in America. With recent across-the-board reforms to the H-1B visa program, a shadow of uncertainty and apprehension regarding employment security, career advancement, and relocation plans has fallen over households and IT companies alike across India.

From September 21, 2025, the drastic increase of record $100,000 fee on each new H-1B visa petition submitted, which was earlier between $2,000 and $5,000 has caused many families worried about job security, travel schedules, dependent visas and long-term settlement plans, with the direct impact being anxiety, combined with emotional and financial stress on families that have settled in the U.S.

The Indian government has taken extreme concern regarding these developments and is in consultations with U.S. authorities to urge mitigations. The general India-U.S. relationship, which has gained significantly from the mobility of skilled talent leading to innovation, economic development, and robust people-to-people relations, is at a challenging turning point.

Though this shift is on the verge of determining different outcomes, let's explore more about the term and know what H-1B label is.

What is the H-1B visa?

The H-1B visa is an American non-immigrant visa that enables American businesses to hire foreign professionals in specialty jobs demanding technical or theoretical skills, including IT, engineering, science, and medicine. The visa typically runs for three years but may be extended up to six or longer. It permits dual intent, i.e., visa holders can petition for permanent U.S. residency. Indians form the largest cohort of H-1B beneficiaries, accounting for more than 70% of applicants.

Why is the H-1B visa significant?

The visa fills the gap in the U.S. domestic labor market for specialized skills. It enables Indian professionals to acquire global experience and better-paying opportunities, while American businesses gain from the availability of skilled workforce that fuels innovation, economic growth, and international competitiveness.

Why do companies need the H-1B visa?

Numerous U.S. tech and science sectors rely on the skill of foreign workers because of skill deficiencies in the country. The H-1B visa allows businesses to sponsor and pay international experts to fill key positions that keep projects and innovations in progress.

What has changed?

Beginning September 21, 2025, the federal government added a one-time $100,000 charge for each new H-1B visa application employers submit for employees seeking to join from abroad. This represents a sharp boost from past fees and is intended to discourage program misuse, especially by outsourcing companies that bring in lower-paid overseas workers to displace U.S. staff. Current visa holders and renewal applications are exempt.

The new regulations also entail rewriting pay rates and giving preference to candidates who earn higher salaries and possess greater skills, with a tilt towards rewarding top talent and cutting back on low wage abuse hiring.

How will the changes affect Indian IT firms and workers?

Indian software companies, which have long depended on the H-1B program to send thousands of professionals to the U.S., will likely be squeezed on profit margins by the high new fees. This has left uncertainty about current projects and may cause them to hire more locals in the United States or move more work offshore. The sudden policy rollout has brought panic to Indian IT professionals and their families, with worries over interrupted career plans and family separation.

What has been the Indian government's response to the changes?

The Indian Ministry of External Affairs has raised very serious concerns regarding the humanitarian implications, highlighting potential disruptions to families. The government is keenly analyzing the entire impact with partners, pushing for discussions with U.S. authorities to cope with the challenges. It identifies mutual advantages of skilled mobility that have traditionally driven innovation, economic expansion, and people-to-people connections between India and the U.S.

How will these changes influence India-U.S. relations?

The H-1B visa program has been a pillar of India-U.S. economic and technological cooperation for more than three decades. The new fees and limits jeopardize bilateral relations, the possibility of talent exchange, and collaboration in emerging industries. While the U.S. seeks to shield domestic workers, India emphasizes the need for sustained skilled mobility to ensure robust trade, technology relationships, and cultural ties.

What are the alternatives for Indian professionals?

As a result of increased expense and limitations in H-1B visas, there is a forecasted increase in alternative visa applications, including the L1 intra-company transfer and O1 visas for exceptional abilities. These visas can be more feasible but with their own stipulations and constraints.

The bottom-line

Here is a detailed table summarizing the H-1B visa fees and recent changes as of 2025, including the newly introduced $100,000 fee:

The H-1B reforms are a response to growing U.S. scrutiny of skilled worker visas due to political and economic anxiety. For India, this upends a critical career and economic trajectory for millions of IT professionals and the firms that employ them. The two nations are likely to negotiate and revise policies to balance protectionism with the common gains of skilled migration, innovation, and economic growth.