New Delhi to Treat Proposed US H-1B Fee Hike as Commercial Matter Rather Than Bilateral Issue

New Delhi is unlikely to turn the proposed steep increase in US H-1B visa fees into a bilateral issue, according to sources familiar with the matter. The government views the development primarily as a commercial concern for US employers seeking to hire foreign professionals, rather than a subject requiring bilateral diplomatic intervention.

Indian authorities recognize that US visa policy and the employment conditions for foreign workers fall within Washington's sovereign domain—an argument the US has frequently maintained. While the proposed fee is expected to have a significant impact on Indian professionals and Indian IT companies operating in the US, the government does not appear inclined to pursue formal bilateral discussions.

A source tracking the development stated that the proposed increase, although substantial, must be borne by US-based entities if they wish to hire foreign workers. Because it functions as a commercial decision, sources indicate there is limited action the Indian government can take.

Earlier this week, the Department of Homeland Security (DHS) proposed an additional fee of $103,265 on each H-1B cap-subject petition, including petitions eligible for the US advanced-degree exemption. This proposed fee would be payable at the time of filing and would apply in addition to all other applicable fees and payments. The DHS measure follows a federal judge's decision in June that struck down the Trump administration's $100,000 H-1B fee imposed via presidential proclamation. The new measure seeks to establish the $103,265 charge through the formal rule-making process.

While New Delhi is not keen to take up the current visa fee hike as a sovereign grievance, India has historically engaged Washington on visa-related matters. In March 2016, India approached the World Trade Organization to seek consultations over increased fees for certain H-1B and L-1 visa applicants, alongside numerical restrictions on H-1B visas.

A second source noted that India has addressed increased H-1B fees with Washington over a long period because Indian nationals are the highest users of these visas, making any fee adjustments relevant to the Indian IT industry. However, officials acknowledge that visa policy remains an independent decision for the US.

The H-1B program maintains an annual cap of 65,000 visas, with an additional 20,000 places allocated for foreign nationals who have earned a master's or higher degree from a US institution of higher education. According to US Citizenship and Immigration Services (USCIS) data for fiscal 2024, Indian-born beneficiaries accounted for 71 percent of all approved H-1B petitions, while China accounted for approximately 12 percent.

USCIS data for 2025 indicates that companies including Amazon, Tata Consultancy Services, Microsoft, Meta, Apple, Google, Deloitte, Infosys, Wipro, and Tech Mahindra Americas were among the highest beneficiaries of issued H-1B visas.

Meanwhile, the IT industry body NASSCOM stated that the proposed fee increase should be evaluated within the context of the program's original purpose: enabling access to temporary skills in areas experiencing shortages within the US.

"The proposed increase in US H-1B visa fees introduces a significant cost consideration for businesses operating cross-border talent models. While the Indian government's stance frames this as a sovereign and commercial matter for US employers, Indian IT companies and technology firms will need to carefully evaluate their talent deployment strategies in the United States. Navigating these regulatory and financial shifts requires businesses to build greater operational resilience and adapt their workforce planning to align with changing compliance costs." — Dr. Shishir Gupta, Founder & CEO, StartupLanes