Hyderabad: In the high-stakes world of global tech talent, few topics stir as much debate as the H-1B visa.
For thousands of Indian professionals each year, it’s a ticket to the American Dream, a chance to work at Silicon Valley giants, innovate in cutting-edge fields and build careers that span continents.
Yet, as of September 2025, this programme finds itself at the centre of renewed controversy.
Just days ago, US President Donald Trump signed an executive order imposing a staggering $100,000 annual fee (equivalent to about Rs 88 lakh) on H-1B applications, a move that’s sent shockwaves through India's IT sector and prompted urgent diplomatic responses from New Delhi.
This isn’t just policy tinkering; it’s a potential game-changer for the livelihoods of skilled workers and the fortunes of companies on both sides of the Atlantic. But what exactly is the H-1B visa, and why does it matter so profoundly to India? Let’s break it down.
What is the H-1B Visa?
At its core, the H-1B visa is a non-immigrant work visa issued by the United States to allow employers to hire foreign professionals in ‘speciality occupations’. These are roles that demand at least a bachelor’s degree or equivalent experience in fields like information technology, engineering, finance, medicine and architecture. Think software developers debugging AI algorithms at Google, data scientists crunching numbers for Wall Street firms or architects designing sustainable skyscrapers; these are the kinds of jobs it targets.
Introduced in 1990 under the Immigration Act, the visa was designed to plug gaps in the US workforce where domestic talent falls short, fostering innovation and economic growth. It’s temporary, typically granting an initial three-year stay that can be extended to six years. Crucially, it’s ‘dual intent’, meaning holders can pursue permanent residency (a green card) without jeopardising their status – a flexibility that sets it apart from many other work visas.
Unlike tourist or student visas, the H-1B is employer-sponsored. A US company must prove it can’t find a qualified American worker for the role, pay the prevailing wage to avoid undercutting locals, and file a petition with the US Citizenship and Immigration Services (USCIS). Once approved, the worker applies for the visa at a US consulate abroad.
How does the system work?
The H-1B programme operates under a strict annual cap: 85,000 visas per fiscal year (from 1 October to 30 September), split into 65,000 for general applicants and 20,000 reserved for those with US Master’s degrees or higher.
Demand far outstrips supply– in recent years, USCIS has received over 4,00,000 applications annually, leading to a lottery system where entries are randomly selected. This randomness has long been a point of frustration, turning career aspirations into a game of chance.
Certain employers, like universities and non-profits, are exempt from the cap, allowing unlimited hires in research or academia. Fees are modest by comparison to the new hike, around $460 for the basic petition, plus $500 for fraud prevention, but processing can take months, with premium options available for faster turnaround.
For the worker, success means not just a job, but a foothold in the US economy.
Many use the time to gain experience, network and transition to other visas or green cards. However, the programme’s rules are labyrinthine: spouses on H-4 visas gained work authorisation in 2015, but only after years of advocacy, and even then, with restrictions.
Why India relies so heavily on H-1B
India isn’t just a participant; it’s the powerhouse of the H-1B world. In fiscal year 2024, Indian nationals snagged about 71 per cent of all approvals, totalling over 2,80,000 visas, dwarfing China's 12 per cent share. This dominance stems from India’s booming education sector, which produces millions of STEM graduates annually, and its IT services industry, home to global players like Tata Consultancy Services (TCS), Infosys, and Wipro.
These firms, often dubbed ‘body shops’ by critics, use H-1B to staff client projects in the US, from software maintenance to cloud migrations. In FY25 so far (up to June 2025), Indian IT majors secured 13 per cent of issued visas, underscoring their outsized role. For young engineers in Bengaluru or Hyderabad, an H-1B offer isn’t merely employment; it's a launchpad for global mobility, higher salaries (often 2-3 times Indian equivalents), and exposure to world-class tech ecosystems.
Yet this reliance cuts both ways. The visa fuels remittances back home, estimated at billions annually, and bolsters India’s soft power. But it also exposes workers to vulnerabilities: long waits for green cards (decades for Indians due to per-country limits), family separations, and the constant threat of policy shifts.
The Storm Clouds: Recent issues and the fee fiasco
The H-1B has never been without controversy.
Over the years, it’s faced accusations of wage suppression, with claims that outsourcing firms pay below-market rates to displace American workers. The Trump administration’s first term brought scrutiny via ‘Buy American, Hire American’ policies, ramping up site visits and denials.
Even under Biden, the lottery evolved into a beneficiary-centric model to curb multiple entries by consultancies.
But nothing compares to the bombshell of September 2025. Trump’s latest executive action slaps a $100,000 annual fee on each H-1B application, equivalent to about Rs 88 lakh, aimed at curbing ‘abuse’ and prioritising higher-wage jobs.
Proponents argue it will deter low-cost outsourcing and encourage domestic hiring; detractors, including the National Association of Software and Service Companies (Nasscom), warn of ‘considerable uncertainty’ and disruptions to bilateral trade.
India’s Ministry of External Affairs (MEA) has responded swiftly, stating it's ‘studying the full implications’ and highlighting potential ‘humanitarian fallout’ for families and workers already in the US. Industries fear an exodus of talent, with more remote work from India and reduced US onsite presence. One analyst quipped on social media that it could ‘accelerate the shift to AI-driven automation’, a silver lining for some, but a body blow for entry-level visas.
This isn’t isolated. Broader US-India tensions over immigration simmer: per-country green card caps backlog Indians for 100+ years, and whispers of ‘gold’ and ‘platinum’ visa tiers for high earners add fuel to inequality debates. As one affected professional put it, “We’ve powered America’s tech boom; now we’re paying the premium.”
Looking Ahead: Balancing act or breaking point?
The H-1B visa remains a vital artery in the global talent flow, injecting fresh ideas into the US economy while empowering India’s youth. Yet, as fees soar and caps tighten, it’s clear the programme is at a crossroads. Will this spur reforms for fairness, like raising the cap or streamlining lotteries? Or will it fracture the US-India tech partnership that’s underpinned mutual prosperity for decades?
For now, aspiring H-1B hopefuls in India are recalibrating dreams.
Consultancies are eyeing workarounds, from more L-1 intra-company transfers to bolstering domestic hubs. And policymakers? They’re under pressure to negotiate. In a world racing towards AI and beyond, curbing skilled migration risks ceding ground to competitors like Canada or the UK, with their more welcoming regimes.
One thing’s certain: the H-1B story is far from over. It’s a reminder that immigration isn’t just about borders, it’s about the human drive to create, connect and contribute, wherever opportunity calls.