Silicon Valley Confusion Over H-1B Visa Spurs Tech Plunge in India

Core Insights - The White House has introduced a new $100,000 fee on skilled foreign worker visas, significantly increasing costs from the previous range of $2,000 to $5,000, causing uncertainty among tech companies regarding their workforce [1][3] - Major tech firms like Amazon, Google, and Microsoft have advised their foreign national employees to either stay in the US or return immediately due to the sudden policy change [3] - The new fee will only apply to H-1B visas when they are first granted, not to existing visas or future renewals, which has implications for hiring strategies in the tech industry [3] Industry Impact - H-1B visas are crucial for tech companies, with approximately 60% of H-1B workers sponsored for computer-related jobs, highlighting the dependency of the tech sector on skilled foreign labor [4] - Amazon is the largest H-1B employer with 10,000 approved beneficiaries for the 2025 fiscal year, indicating a potential $1 billion cost for bringing in new employees under the new fee structure [4] - Other major companies like Microsoft, Meta, Apple, Google, JPMorgan Chase, Walmart, and Deloitte are also among the top H-1B sponsors, now facing increased upfront hiring costs [4] Regional Consequences - India, which accounts for roughly 71% of H-1B beneficiaries, is likely to experience immediate economic impacts, particularly in its IT consulting sector, which heavily relies on US revenue [4] - Shares of major Indian IT firms, such as Tata Consultancy Services and Infosys, fell by 3% and 2.5% respectively following the announcement, reflecting market concerns over the new visa fee [4] - The Nifty IT Index, which tracks the broader Indian tech sector, also declined by 3%, indicating a broader negative sentiment in the market [4]