Mumbai, September 22, 2025 — Shares of major Indian IT companies fell sharply on Monday following renewed concerns over a proposed increase in H-1B visa fees by the United States government. The move, aimed at tightening immigration norms and raising revenue, has triggered investor anxiety over potential cost escalations and operational disruptions for India’s export-driven tech sector.
Leading IT firms including Infosys, TCS, Wipro, and HCL Technologies saw intraday declines ranging from 2% to 4%, with the Nifty IT index closing down by 3.1%. Market analysts attributed the sell-off to reports suggesting that the US Department of Homeland Security is considering a substantial hike in visa processing and renewal charges for skilled foreign workers, particularly under the H-1B and L-1 categories.
The H-1B visa program is a critical channel for Indian IT companies to deploy skilled professionals to client sites in the US, which remains their largest revenue market. A fee hike could significantly impact margins, especially for mid-tier firms with high onsite dependency.
“This development adds to the regulatory overhang that has been weighing on the sector,” said Anirudh Sen, a senior analyst at a Mumbai-based brokerage. “While top-tier companies may absorb the cost, smaller players could face margin pressure and project delays.”
Industry bodies such as NASSCOM have urged the Indian government to engage in diplomatic dialogue with US counterparts, citing the strategic importance of tech collaboration and the role of Indian professionals in supporting American businesses.
The proposed fee revision is part of a broader immigration reform package expected to be tabled in the US Congress later this year. While the final contours are yet to be confirmed, the anticipation of higher compliance costs and reduced visa flexibility has already begun to reflect in market sentiment.
