US President Donald Trump’s decision to impose an annual $100,000 fee on H-1B visa holders from September 21, 2025, triggered sharp declines in technology stocks in the Indian stock market. The levy will remain in effect for 12 months and is expected to generate over $100bn for the US Treasury, aimed at cutting federal debt and financing tax reductions, state owned DD News reported.

Reports said US based companies like Microsoft and JPMorgan advised employees holding H-1B and H-4 visas to return to the US before the deadline and avoid international travel until further guidance. Both firms have not issued official statements but are seen taking precautionary steps ahead of enforcement.

Indian IT service providers, among the largest users of H-1B visas, saw their shares tumble following the announcement. Infosys dropped 4.5%, Cognizant fell 4.3%, Wipro slid 3.4%, while Accenture lost 1.3%. Market sentiment soured as investors weighed higher staffing costs and reduced flexibility in workforce deployment. Roughly 71% of H-1B holders are from India, mostly employed by companies such as Infosys, Wipro, Cognizant and Tata Consultancy Services.

The H-1B programme allows foreign professionals to work in specialised fields including technology and engineering, typically for three years with extensions up to six years. Critics argued the steep fee would curb talent mobility and dampen innovation, while supporters in Washington claimed it would prioritise highly skilled workers and discourage firms from replacing Americans with cheaper foreign staff. Employers will now also need proof of payment verified by the US Secretary of State.