US' H-1B fee move can have ripple effects on American innovation system, will impact Indian tech companies: Nasscom

New Delhi [India], September 20 (ANI): Indian IT industry body Nasscom has expressed concerns following the White House's September 19 announcement of a new USD 100,000 annual fee on H-1B visa applications, calling the move potentially disruptive to global business continuity and the innovation ecosystem in the United States.
In a statement issued on Saturday, Nasscom said that while it is reviewing the finer details of the proclamation, such significant adjustments to the skilled worker visa programme could have far-reaching implications.
"Adjustments of this nature can potentially have ripple effects on America's innovation ecosystem and the wider job economy. It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India's technology services companies will also be impacted as business continuity will be disrupted for onshore projects which may require adjustments. Companies will work closely with clients to adapt and manage transitions," the industry body said.
US President Donald Trump on Friday (local time) made a major overhaul to the H-1B visa programme, imposing a steep USD 100,000 annual fee on H-1B visa applications, raising fresh questions about whether this is a much-needed correction or a potentially crippling blow to America's tech talent pipeline.
The administration insists the intent is to restore integrity to a programme originally designed to bring in "top-tier global talent" on a temporary basis. Instead, it argues, the H-1B system has been hijacked by outsourcing firms to displace American workers, depress wages, and even create national security risks.
Nasscom said the effectiveness of proclamation gives only a one-day window for implementation which is unrealistic and disruptive.
"The timeline for implementation (anyone entering the U.S. after 12:01 a.m., September 21) is also a concern. A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption," Nasscom said.
While acknowledging the shift in global delivery models, Nasscom pointed out that Indian IT companies have been steadily reducing their dependence on the H-1B visa route by increasing local hiring in the US. It also defended the compliance and contribution of Indian firms to the US economy.
"These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups. The H-1B workers for these companies by no means are a threat to national security in the US."

The industry body reiterated the critical importance of high-skilled talent in maintaining America's technological leadership at a time when AI and other frontier technologies are reshaping global competitiveness.
"Nasscom has consistently emphasized that high-skill talent is vital to driving innovation, competitiveness, and growth for America's economy. This is especially critical at a time when advances in AI, and other frontier technologies are set to define global competitiveness. High-skill talent will remain central to sustaining America's innovation leadership and long-term economic strength," the statement noted.
Nasscom said it will continue to monitor developments, engage with industry stakeholders, and seek further clarity on the discretionary waiver process, which is to be granted by the Secretary of the Department of Homeland Security. (ANI)