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News Topical, Digital Desk : US President Donald Trump signed a new order on Friday, increasing the H-1B visa fee to $100,000 annually. This decision is the latest step in his government's crackdown on immigration. It will have a direct impact on Indian IT companies. According to a report, Indian companies have sponsored a total of 13,396 H-1B visas. Previously, these fees cost approximately $13.4 million, but now this will increase to $1.34 billion, or about 10% of the combined net profit of major companies like TCS, Infosys, HCLTech, Cognizant, and LTIMindtree in FY25.
The impact of this decision has already been felt in the stock market. Cognizant shares fell 4.75% on the Nasdaq, while Infosys shares fell 3.40% on the NYSE. A sharp sell-off is expected in the IT sector as soon as the Indian stock market opens on Monday.
Tech companies face the threat of a talent pool crisis. According to stock market experts, Indian IT and tech companies dependent on H-1B visas may face a talent pool crisis. However, some American tech companies, such as Apple, Meta, Amazon, Google, NVIDIA, and Tesla, will also face this problem, as they will hire American techies following Trump's H-1B visa fee hike. Experts say that American tech professionals demand higher salaries than Indians, even though Indian techies have superior skills. This could put pressure on companies' margins. Analysts predict that this sudden increase in H-1B visa fees will significantly increase the costs of Indian IT companies like TCS, Infosys, Wipro, HCL Technologies, and Cognizant. This will directly impact their competitive position. Experts say that American companies will also not be spared. Major American companies like Amazon, Microsoft, Google, Apple, and Meta employ a large number of Indian H-1B professionals. Now, their staffing costs will increase significantly. Companies will only provide H-1B sponsorship for senior or essential roles, which may restrict junior and mid-level recruitment. Analysts also believe that the H-1B fee increase will increase employee costs for both Indian and American companies. The Trump administration aims to provide jobs to unemployed Americans, but they are not as skilled as Indian professionals. Companies will pay American employees higher salaries but produce lower output. This will put pressure on companies' business volumes and margins. Its effect can also be seen on NASDAQ listed stocks like NVIDIA, Tesla, Meta, Alphabet etc. from Monday.
Read More: 'Indian tech operations will be paralyzed', Nasscom warns on President Trump's visa fee order
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