New Delhi: India’s IT industry has welcomed a recent clarification from the U.S. government regarding the $100,000 H-1B visa fee, which will apply only to new applicants and not to existing visa holders or those seeking renewals. The clarification has eased concerns in India’s $283 billion IT sector, which heavily relies on H-1B visas to send skilled professionals to the United States.

The $100,000 fee was introduced through an executive order signed by U.S. President Donald Trump. Initial uncertainty over its application caused apprehension among Indian IT companies, but the White House confirmed that current H-1B visa holders and renewal applicants would not be affected.

Nasscom, India’s IT industry body, said the clarification reduces uncertainty and allows companies to better plan their U.S. operations. Many Indian IT firms have already reduced reliance on H-1B visas by increasing local hiring in the United States and investing over $1 billion in employee upskilling. As a result, Nasscom expects the impact of the new fee to be limited.

Despite the clarification, Indian IT stocks experienced a decline. The Nifty IT index fell 2.6 percent, with major firms like Infosys, Wipro, and TCS seeing around 2 percent losses. Persistent Systems recorded the largest drop at 4 percent. U.S.-listed shares of Infosys and Wipro also fell following the announcement. The sector, which earns approximately 57 percent of its revenue from the U.S., continues to face pressures from geopolitical tensions, economic uncertainty, and disruptions from emerging technologies such as generative AI.

Industry experts believe the new fee could accelerate the growth of Global Capability Centers in India and nearshore markets such as Mexico and Canada. India is projected to host over 2,200 such centers by 2030, potentially generating up to $100 billion in market size and creating 2.8 million jobs.

While the clarification provides temporary relief, Indian IT companies will need to continue adjusting their strategies to navigate changing global talent dynamics and evolving visa policies.