Dreamers confront new H-1B realities in India’s tech cradle
The new $100,000 H-1B visa fee creates uncertainty for IT workers in India, threatening careers and the tech sector's growth, while some see potential benefits.
Chennai/Bengaluru/Kochi:
Reshma Elizabath has waited over two years for her career-defining opportunity: a three-year stint at her company’s US headquarters. Now the IT professional from Pandalur in the Nilgiris sits in her Velachery office, uncertain whether her firm will shoulder Trump’s new $100,000 H-1B visa fee.
“I’m confused. Will my company still send me or ask me to contribute? I honestly don’t know,” she said, reflecting the unease gripping thousands of IT workers caught in the policy crossfire.
While the White House clarified Monday that existing visa holders need not rush back to America – or stay put --- and the fee applies only to future applications, the long-term implications for India’s technology sector and the families banking on American dreams remain profound. The policy threatens to dismantle a decades-old business model that built Tamil Nadu and Karnataka into global IT powerhouses.
The fee hike strikes at the heart of India’s $245 billion information technology sector, where an estimated 40-50 per cent of mid-level engineers in large firms have either worked on H-1B visas or aspire to. For Tamil Nadu, often dubbed the “back office of the world,” and Karnataka, India’s technology capital, the stakes extend beyond individual careers to entire regional economies built on US-bound talent pipelines.
Anivar Aravind, an IT professional in Porur, and originally from Kerala, described the changes as transformational: “This isn’t just a cost increase for onsite employment, it’s a fundamental change that marks the death of the traditional onsite business model. This primarily shows the H-1B visa dream is over for Indian professionals. In addition, this will also end study-in-the-US plans as well.”
The concerns expressed across India’s tech hubs represent a markedly different anxiety from the panic on Saturday, when thousands of existing H-1B workers in America feared immediate disruption to their lives and confronted the possibility of travel restrictions or forced returns.
In the Indian tech hubs, many say the real impact will be opportunity loss — affecting even those still to step out of their higher education. In Coimbatore’s Kinnathukadavu, farmer Satheesh Kumar said he struggled to understand what the fee hike means for his son Aravind, who recently secured Optional Practical Training in the US.
“We were just relieved when he got his break. Now the family has to figure out how to raise extra money. It is not easy for people like us,” he said, expressing the anxiety of middle-class households suddenly confronted with additional financial burdens.
KV Mariyam, a government primary school teacher in Bitherkad, Nilgiris, felt the announcement like “a sudden storm cloud” over her son Alen’s postgraduate study plans. “Families like ours make sacrifices for years to support a child’s dream. Now, just when he was ready to take the next step, this comes. We don’t know how much more we’ll have to stretch.”
The impact extends to IT entrepreneurs in these regions as well, with the changes threatening to create a two-tiered system where large multinational corporations may absorb the costs, while smaller firms are left to with impossible calculations.
Mahesh Kapoor, CEO of a Whitefield-based startup in Bengaluru, warned the move would dent IT revenue: “Smaller firms like ours, which cannot absorb such massive costs, will be forced to rethink US operations. It hits the heart of India’s IT growth story.”
An HR manager of one multinational tech company based in Chennai’s OMR office district added: “The new fees create two classes of professionals — those backed by large companies that can pay, and those left stranded by smaller firms or consultancies. This will also affect retention and morale. Many may now explore Canada or Europe instead of the US.”
Seeing the glass half full
Yet some industry veterans see potential benefits in forcing talent to remain in India. Infosys veteran and investor Mohandas Pai called the fee hike prohibitive for new applicants, predicting it would “accelerate offshore delivery and expand India’s Global Capability Centers.”
Kunal Bahl, co-founder of Snapdeal, anticipated reverse migration: “Because of the new H-1B rules, a tremendous number of talented individuals are going to be headed back to India. The talent density in India is going up.”
Bahl recalled his own H-1B rejection at Microsoft in 2007: “It was crushing and numbing at that moment, but life-changing eventually when I moved back to India. To those impacted today, be positive. There is something much bigger & better in store for you.”
In Kochi, IT infrastructure manager Anish Panthalani predicted the policy would backfire on American firms: “More than Indians, the US firms are likely to be affected in the long-run. The US IT sector heavily depends on Indians for various projects. With this fee coming in, overnight, the US firms cannot build up resources.”
Students represent perhaps the most vulnerable group. M. Shruthi, 26, an IT professional from Hosur in Krishnagiri district, had planned pursuing higher studies in America followed by Optional Practical Training. “The new costs make everything uncertain. It feels like the rules are being changed halfway through the game.”
P Anuradha, 32, described the atmosphere in her Chennai office as “nervous.” “People are whispering about whether their onsite chances are over. For many of us, going to the US was not just about money but about professional exposure and learning. That door looks almost closed now.”
