New Delhi: The recent H1B visa fee hike by the U.S. government under President Donald Trump, raising the cost to $100,000 (approximately Rs 83 lakh), is expected to have a limited impact on Indian IT service companies, according to rating agency Crisil.
In its Intelligence report, Crisil projected that the fee increase could reduce operating margins of Indian IT firms by just 10-20 basis points in the upcoming fiscal year. Last year, these companies reported average operating margins of 22%.
Crisil highlighted that IT firms may pass on 30-70% of the additional costs to U.S. clients, mitigating the financial burden. Indian IT companies have also strategically reduced reliance on H1B visas in recent years through increased local hiring and expansion of offshore delivery centers.
Between 2017 and 2025, approvals for H1B visas for major IT firms including TCS, Infosys, Wipro, and HCL Technologies have dropped by nearly 50%, reflecting tighter U.S. regulations. Visa-related expenses currently account for just 0.02-0.05% of total employee costs, which may rise to about 1% due to the new fee, but can be managed through offshoring and client pricing strategies.
The new fee applies only to fresh H1B applications, not to existing or renewal visas, further limiting immediate financial implications. Crisil also noted a potential moderate medium-term impact on remittances to India.