NEW DELHI– The U.S. government’s move to impose a $1 million fee on new H-1B visas for foreign workers will have only a limited financial impact on Indian IT services firms, trimming their operating margins by 10 to 20 basis points next fiscal year, according to a new report.
Research firm Crisil Intelligence said companies are likely to pass on 30 to 70 percent of the higher costs to clients, softening the blow to profitability. India’s top IT exporters had operating margins of about 22 percent in the last fiscal year.
Despite the visa fee hike, industry revenues are expected to reach $143–145 billion this fiscal year, up 2 to 4 percent from a year earlier. That growth comes after a period of marginal or flat performance.
The U.S. directive, effective September 21, 2025, applies only to new visa applications and not to current H-1B holders or renewals, limiting its immediate impact.
Indian firms have gradually reduced reliance on H-1B visas by expanding offshore delivery, opening nearshore centers, and hiring more U.S. employees. Government data show the number of Indian employees on H-1B visas at TCS, Infosys, Wipro, and HCL Technologies dropped from 34,507 in 2017 to 17,997 in 2025.
Employee costs made up 55–57 percent of total sales for Indian IT firms last year, while visa fees accounted for just 0.02 to 0.05 percent of those costs. With the new structure, ICRA estimates visa expenses could rise to as much as 1 percent of total employee costs.
Tier-1 IT companies such as TCS, Infosys, Wipro, and HCL generate 96 percent of their revenue from overseas markets, with the U.S. alone contributing 53 percent. India also remains the world’s largest recipient of remittances at $118.7 billion in fiscal 2024, about 23 percent of which came from the U.S. (Source: IANS)
