New Delhi: The recent move by US President Donald Trump to impose a **USD 100,000 fee on new H-1B visas** will have only a small impact on Indian IT companies, according to Crisil Intelligence.
The rating agency’s arm said on Thursday that the measure will cut **just 0.10-0.20 per cent from operating margins** of large IT firms in the next fiscal year. This is because companies have steadily reduced dependence on H-1B visas over the past few years.
Falling reliance on H-1B visas
Crisil noted that visa denial rates spiked to **24 per cent in 2018**, forcing companies to adjust. Since then, firms have expanded offshore delivery, set up near-shore centres, and hired more locals in the US. By 2024, denial rates eased to **3 per cent**, but reliance on the visa route continued to fall.
Official data shows that the number of Indian employees on H-1B visas at **TCS, Infosys, Wipro, and HCL Technologies** dropped from **34,507 in 2017 to 17,997 in 2025**.
### Margins and cost sharing
Indian IT majors had an **average operating margin of 22 per cent in FY25**. Crisil said that 30-70 per cent of the new visa costs are likely to be passed on to clients.
Currently, visa expenses form just **0.02-0.05 per cent of total employee cost**. Even with the new fee, costs may rise to **0.3-0.6 per cent**, and at worst, **1 per cent** if the share of initial H-1B employment remains high.
### Industry outlook
The IT industry is expected to generate **USD 143-145 billion in FY26**, with revenue growth slowing to **2-4 per cent**. Growth beyond this is expected to be flat.
Tier-1 IT firms generate **96 per cent of revenues from global markets**, with the **US contributing 53 per cent**. Last year, the sector exported services worth **USD 119 billion**.
### Wider implications
India received **USD 118.7 billion in remittances in FY24**, with nearly a quarter from the US. Crisil said the higher visa fee may reduce this share over time.
The agency added that the policy change may also **accelerate offshoring** and discourage Indian students from pursuing higher studies in the US.
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#H1BVisa #IndianIT #Crisil #Trump #TCS #Infosys #Wipro #HCL #ITExports #VisaFeeHike #USIndiaRelations
