PAC Watch

H-1B Visa

On 20th September 2025, the White House, in a surprising move, announced the fee hike for the H-1B Visa. As per the new hike, the new petitions would be charged a fee of $1000002.

What does it mean

Though the White House has clarified that the fee hike is a one-time payment—applicable only to new petitions and not on re-entry—the move will have far-reaching implications for India, Indian students, and Indian professionals.

Some anticipate that the hike could lead to more remote hiring. The challenge, however, lies in the HIRE Legislation3, which forces companies to weigh trade-offs. If firms are able to navigate these restrictions and opt for remote hiring, Indian professionals could benefit significantly. 

The fee hike, which directly impacts India, also delivers a blow to the strategic relationship assumed to exist between India and the US. While this may prompt a relook at India’s foreign and trade policies, it also compels India to consider how best to minimize—if not neutralize—the impact of this decision.

In this context, India can strengthen its position by accelerating the growth of the GCC (Global Capability Centers) ecosystem—a process already underway4. Done right, GCCs could offset at least some of the impact on Indian companies by attracting and retaining5 top talent within the country. No longer confined to back-end operations, today’s GCCs function as digital twins of global headquarters, operating in sync with enterprises worldwide as integral partners in global operations6.

Furthermore, the move gives India an opportunity to approach the WTO in what could be a first-of-its-kind case, arguing that such high fees amount to a non-tariff trade barrier7. Should India choose this path, the world will be watching.

Source

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