Indian IT stocks tumbled sharply after U.S. President Donald Trump signed a proclamation imposing a $100,000 fee on new H‑1B visa applications, a move that could significantly raise costs for technology companies reliant on skilled Indian professionals. Shares of Infosys fell as much as 4.5%, Wipro dropped 3.4%, and Cognizant slipped over 4% in early trading, as investors reacted to fears that the steep fee would disrupt the long‑standing onsite‑offshore delivery model that underpins much of the sector’s U.S. business.
The H‑1B programme has been a critical channel for Indian IT service providers such as Tata Consultancy Services, Infosys, HCLTech, and Wipro, enabling them to deploy engineers to client sites in the U.S. for project delivery. With Indian nationals accounting for more than 70% of H‑1B recipients in recent years, the new fee threatens to erode profit margins and could force companies to accelerate offshore delivery or hire more local U.S. talent at higher wage costs. Analysts warn that the change could also delay project timelines and lead to repricing of contracts, as clients reassess budgets in light of increased staffing expenses.
Although the White House later clarified that the $100,000 charge is a one‑time fee applicable only to new applicants—and not to renewals or existing visa holders—the announcement has already created uncertainty in the market. Immigration lawyers and industry bodies such as Nasscom have cautioned that the measure will likely make companies more selective in sponsoring visas, reserving them for only the most business‑critical roles. This could reduce the pipeline of skilled Indian workers entering the U.S., impacting not only the IT sector but also America’s innovation ecosystem, which has long benefited from global talent.
Market experts believe the immediate sell‑off reflects investor anxiety over potential revenue headwinds in the U.S., which accounts for more than half of the Indian IT industry’s earnings. While some firms have been diversifying delivery locations and expanding local hiring in anticipation of tighter visa rules, the sudden scale of the fee hike has caught many off guard. If sustained, the policy could accelerate structural changes in how Indian IT companies serve U.S. clients, with a greater emphasis on remote execution, near‑shore centres, and automation to offset rising costs.