US President Donald Trump announced a massive change in the H1B visa application policy that has enabled thousands of Indians harbouring the American Dream to realise it. The H1B visa has been the biggest gateway for many a software professional from India to move to the US.
Effective from 21st September 2025, an $100,000 annual fee per H-1B petition has been imposed on employers sponsoring an H1B visa. This will make it prohibitively expensive and employers will only sponsor “exceptionally skilled” talent.
In Fiscal Year (FY) 2023, about 72.3% of all H-1B visas issued went to Indian nationals. Historically (e.g. FY 2017-2019), Indian nationals have received between 70% and 72% of H-1Bs.
One source estimates there are about 730,000 H-1B holders active in the US and about 550,000 dependents (spouses/children). With 1.28 million people in H-1B households and assuming that 72% are Indian, we are talking of about 916,000 Indians who will have their American Dream challenged.
This will also have a direct bearing on tech hiring. The ITeS companies - Infosys, TCS, WIPRO, Accenture, Cognizant - will have margins squeezed. Their hiring will show. The new policy has a major impact on these companies, sending Indians to work on-site, in the US. We can expect fewer on-site opportunities through Indian IT firms. US Companies will reduce their dependence on Indian workers and skill sets.
What It means is that a plain B.Tech won’t make the cut where a US employer will also pay $100,000 to sponsor an employee. You will need top grades, specialisation, or U.S. postgraduate degrees for an employer to be willing to absorb such costs.
New costs make junior-level on-site staffing unviable. Firms will reserve H-1Bs for senior, specialised roles only. This will have a fallout on campus hiring. Reduced U.S. placements would mean fewer campus offers. Recruitment through campus job drives will slow, especially for generic coding roles.
We will see industry shifts. Companies may shift to more offshore delivery from India while also exploring nearshore hubs (Mexico, Eastern Europe). This is part of a wider push to hire locals in the U.S. only.
The “onsite via IT company” pathway is collapsing. The future belongs to specialists, innovators, and global explorers. The American Dream isn’t dead - but it’s more exclusive and expensive than ever.
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