• New $100,000 annual fee on H-1B visas could disrupt Indian IT operations.
• Nasscom highlights the fee's adverse effects on ongoing projects and global job markets.
• Implementation set for September 21, creating significant uncertainty for companies.
• Indian firms have been reducing reliance on H-1B visas, focusing on local hiring.
• Fee hike follows a proclamation by President Trump amidst broader immigration controls.

The introduction of a new $100,000 annual fee on H-1B visa applications has raised alarm within India's technology sector, with the industry body Nasscom stating that this could seriously disrupt the global operations of Indian IT companies. This fee, announced by the White House, is touted as a significant change in the U.S. temporary employment visa framework, compelling some major tech firms, including Microsoft, JPMorgan, and Amazon, to recommend that visa holders stay in the U.S. or return promptly, according to Reuters and Channel News Asia.

Nasscom emphasizes that the abrupt policy rollout, with a September 21 implementation date, generates "considerable uncertainty" for businesses, professionals, and students worldwide, disrupting ongoing projects for technology services firms. The organization warns that this new fee could have "ripple effects" on the U.S. innovation ecosystem and broader job markets, acknowledging the financial adjustments companies will have to make. They further criticized the short notice for significant policy changes, stressing the need for transition time to minimize disruptions, according to India Times, Reuters, and Channel News Asia.

Moreover, Nasscom noted that Indian tech companies are increasingly focusing on local hiring to reduce dependence on H-1B visas. The organization firmly stated that H-1B professionals do not pose a threat to national security and play an essential role in the U.S. economy, particularly amidst rapid changes such as the advancement of artificial intelligence and other technologies. Recent UK data shows that Amazon leads in H-1B approvals, followed by Tata Consultancy Services, Microsoft, and other major firms, underscoring the significance of this visa program for attracting vital talent for the U.S. industry, according to India Times and Reuters.