U.S. H1-B Visa Changes May Adversely Impact Indian IT Companies

13 August 2025: The US government has brought a major change in its H1-B visa policy. The lottery allotment system is being replaced with a wage based system. Also the drop-box facility or need for not giving any interview in case of visa renewals has been done away with. Now even for visa renewals in-person interviews will have to be given at US embassies and consulates.

These changes may adversely impact Indian Informational Technology companies. At 1:57 p.m. today, 13^th August, Nifty IT index is up by 0.14%. Broader Nifty 50 index is up by 0.65% at this time.

Students and those going to US for tourism purposes may also get adversely impacted by these changes.

The wage based allocation system will prioritize applications with better wages, resurrecting a “prioritization” approach introduced under the first Trump administration.

Renewal In-Person Interviews Required

As of September 2, 2025, most applicants for non-immigrant visas (including H-1B, L-1, and F-1) will be required to complete an in-person interview at a U.S. embassy or consulate. The waiver of interview programs at Dropbox has been effectively canceled, and the waiver has been applied to individuals of all ages, including children and seniors.

Integrity Charge Fee Hike

From July 4th, 2025, most visas, including the H-1B, now have a $250 Visa Integrity Fee. This is the fee proposed in the Omnibus bill, titled “One Beautiful Bill,” which aims to increase economic pressure on applicants and their sponsors.

Impact on Indian Applicants

The project will have a significant impact on Indian technology workers, who account for the highest percentage of H-1B users in the world. Industry experts underlined that individuals awaiting a visa appointment in India can expect longer wait times and delayed travel plans. Additionally, there are associated risks for H-1B visa holders who may lose their work authorization if they fail to return within their authorized period.

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Source: US government