Washington, D.C. 21/09/2025— In a move that could dramatically reshape the global tech labor market, the Trump administration has announced a sweeping new policy: every H-1B visa issued to foreign workers will now carry a $100,000 yearly fee.

Officials say the policy is aimed at ending decades of abuse by corporations that relied on the program to import cheaper foreign labor rather than investing in U.S. workers. “For too long, big companies have boosted their profits by exploiting the H-1B system. That era is over,” a senior White House official said.

The H-1B program, dominated by Indian outsourcing firms, has been a lifeline for India’s booming IT industry. Analysts warn the new fee could devastate the Indian economy, which depends heavily on tech exports to the United States. “This is a near-fatal blow,” said Dr. Ramesh Malhotra, an economist in New Delhi. “The cost will wipe out profit margins, force mass layoffs, and stall India’s IT growth for years.”

Critics of the old system argue the visa was widely misused. American watchdog groups long claimed companies were hiring workers from India at a fraction of U.S. salaries, pocketing massive profits while sidelining local talent. At the same time, insiders allege the system was exploited in India itself, where some firms engaged in nepotistic practices — “cousin hiring cousins” — to funnel opportunities within networks, rather than on merit.

India’s IT lobby has urged Washington to reconsider, warning that the new rules could spark a trade rift. But Trump officials are framing the policy as a nationalist victory. “This ensures jobs for Americans first. We will no longer subsidize foreign economies at the expense of U.S. workers,” the official added.

With the announcement, shares of major Indian IT giants such as Infosys, Wipro, and Tata Consultancy Services tumbled on the Mumbai Stock Exchange, signaling investor fears of a prolonged downturn.

For many in India, the message is stark: the era of easy profits from the H-1B pipeline may be over, and the consequences for the country’s economy could be severe.