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Indian IT Stocks Fall as Trump’s $100,000 H1B Visa Fee Hits Nifty IT Index

2 min read

9/25/2025

Indian technology shares tumbled Monday after the U.S. imposed steep new costs on hiring foreign workers, raising concerns about margins in one of India’s most globalized industries.

The Nifty IT Index, the benchmark for India’s tech sector, slid 2.8%, the sharpest drop in weeks. The selloff came after President Donald Trump announced a $100,000 fee on new H-1B visas, making it far more expensive for companies to send talent abroad.

“This sudden fee hike has sparked confusion and panic among tech companies and international workers, especially Indians, who make up over 70% of H-1B recipients,” wrote Devarsh Vakil, head of prime research at HDFC Securities.

Vakil warned the rule could make on-site U.S. assignments less viable, eroding a core business model for India’s IT exporters.

Indian IT Stocks Fall as Trump’s $100,000 H1B Visa Fee Hits Nifty IT Index

Stock reaction:

Mphasis plunged 4.7% in afternoon trading.
LTIMindtree dropped 4.5%, while Tech Mahindra fell 3.5%.
Larger firms like Infosys (-3.2%), Wipro (-2.2%), and TCS (-3.2%) also slid.

Indian IT companies have historically leaned on the H-1B program, though reliance has gradually eased. Still, the U.S. remains crucial: last year, American clients accounted for 57% of the $193 billion revenue pool of Indian IT service providers, according to Wright Research.

Even if companies pass higher costs on to clients, Citi analysts believe profit margins will still take a hit.

Some firms may respond by building offshore “global capability centers” equipped with automation and AI to cut visa dependence, said Kranthi Bathini, equity strategy director at WealthMills Securities.

The visa setback comes as U.S.-India relations are already strained by Trump’s new tariffs on Indian goods. Economists warn that, combined, these pressures could weigh on growth, even though India’s domestic demand provides some cushion.

Citi strategists noted another ripple effect: potential pressure on remittances. The U.S. accounts for 28% of money sent back to India by workers abroad, though much of that comes from non-H-1B holders.

Longer term, analysts say the turmoil may accelerate India’s push for self-reliance. Over the weekend, Prime Minister Narendra Modi urged Indians to reject imports and support local products.

“Whatever our people need, whatever we can make in our country, we should make in our country itself,” Modi said.

Source: Indian IT Stocks Fall as Trump’s $100,000 H1B Visa Fee Hits Nifty IT Index