New Delhi – President Donald Trump decision to impose a $1 million fee on new H-1B visas for foreign workers is likely to have a limited financial impact on Indian IT services firms, according to a report by Crisil Intelligence.
The research firm said the fee hike could trim operating margins of leading Indian IT exporters by 10 to 20 basis points in the next fiscal year, as companies are expected to pass on between 30 and 70 percent of the additional costs to clients.
India‘s top IT companies had operating margins of roughly 22 percent in the previous fiscal year. Industry revenues are projected to reach $143–145 billion in the current fiscal year, reflecting growth of 2 to 4 percent from a year earlier, after a period of flat or marginal expansion.
The new U.S. government directive, which came into effect on September 21, applies only to new visa applications and does not affect current H-1B holders or renewals, limiting its immediate impact.
Indian IT firms have gradually reduced their dependence on H-1B visas by expanding offshore delivery, opening nearshore centres and increasing local hiring in the United States.
Government data show the number of Indian employees on H-1B visas at TCS, Infosys, Wipro and HCL Technologies fell from 34,507 in 2017 to 17,997 in 2025.
Employee costs accounted for 55–57 percent of total sales for Indian IT firms last year, while visa fees represented only 0.02 to 0.05 percent of these costs. Under the new structure, ICRA estimates visa expenses could rise to as much as 1 percent of total employee costs.
Tier-1 IT firms generate 96 percent of their revenue from overseas markets, with the U.S. contributing 53 percent.
India remains the world’s largest recipient of remittances, with $118.7 billion received in fiscal 2024, around 23 percent of which came from the United States.
