The $100,000 H-1B Visa Fee Shock: What It Means for Indian Startups, Jobs, Real Estate, and Stocks

Layak Singh
Sep 21
4 min read

For decades, the H-1B visa has been the bridge between India’s engineers and America’s tech economy. More than 70% of H-1Bs go to Indians, making it the single most important professional migration channel for our talent.

But in September 2025, everything changed. The U.S. government imposed a $100,000 fee on all new H-1B applications—a 200x jump from just two years ago.

This isn’t just about visas. It’s about startups, jobs, housing, remittances, and even stock markets in India. Let’s break it down.

The Explosion in H-1B Costs

Until recently, applying for an H-1B was expensive but manageable.

2023: Filing fee was $460.
2024: Raised to $780, with lottery registration at $215.
2025: A jaw-dropping $100,000 for each new application.

For companies, this means sending 100 employees could now cost $10 million—a cost many will never justify.

Startups: The End of U.S. On-Site Dreams

For Indian startups, especially early-stage ones, this changes the game.

Seed-stage founders can’t burn 5–10% of their funding on a single visa.
Remote-first models will become the default: build in Bengaluru, sell via Zoom, partner for U.S. presence.
Even unicorns will reserve visas for senior executives only.

India’s IT exports touched $250 billion in FY 2024, with 60% tied to the U.S. This policy accelerates the shift to offshore delivery instead of on-site rotations.

Talent: From Brain Drain to Brain Stay

Historically, the brightest engineers left India for Silicon Valley. Now:

More talent stays home: IIT and NIT grads may never attempt the $100k visa gamble.
Wage premium in India: Mid-career developers could see 10–15% salary hikes as domestic demand soaks up supply.
Global Capability Centers (GCCs) in India—already employing 1.6M people—will expand faster as multinationals scale Indian campuses.

This is “reverse brain drain,” or as I’d call it: brain stay.

Real Estate: A Subtle Rerouting of Demand

Less migration doesn’t mean less housing demand—it shifts where it happens.

More local rentals: Engineers staying in Bengaluru, Hyderabad, Pune, and NCR drive stronger leasing demand.
NRI housing remains strong: Overseas Indians invested $15B in Indian real estate in 2024, expected to hit $25B by 2030.
Urban absorption: Knight Frank data shows double-digit YoY growth in home sales in 2024; this policy could reinforce it.

Remittances & Services: India’s Safety Net

India remains the world’s #1 remittance recipient.

2015: $69B
2023: $125B

Even if U.S. flows soften, Gulf and Europe remain strong. Add to that $340B in services exports in FY 2024, and India has a cushion against migration shocks.

Jobs & Students

IT jobs: Infosys, TCS, Wipro, and HCL (with >1.5M employees) will hire more domestically to replace on-site rotations.
Students: Over 270,000 Indians studied in the U.S. in 2023–24. Their post-study options are now riskier, so expect Canada, UK, and Australia to grab market share.

Stock Market Reaction

Investors didn’t take the news lightly.

The Nifty IT index rose steadily in early September 2025.
On Sept 21, when the $100k fee was announced, it dropped sharply.
Partial recovery followed, but volatility remains.

Infosys and Wipro ADRs each dipped 3–4%, reflecting cost fears.

Long-Term Outlook

India as the world’s office: With relocations curbed, companies double down on India-based delivery.
Diversified migration: Young Indians look to Canada, UK, Australia instead of only the U.S.
Domestic innovation boost: More senior engineers stay in India, fueling SaaS, AI, and fintech startups.
Policy push: India may negotiate exemptions, but also expand incentives for GCCs and upskilling.

Where Will Indian Talent Go Instead?

The U.S. may have priced itself out of reach for many. Here’s how other destinations stack up:

🇨🇦 Canada: The Rising Favorite

Visa program: Express Entry & Global Talent Stream (GTS).
Cost: Application fees are ~CAD 1,575 (~$1,150), plus proof of funds. Employers pay just CAD 1,000 (~$730) per foreign hire under GTS.
Processing time: 2–6 months (often faster than U.S. green card backlog).
Upside: Direct path to permanent residency; Canada already hosts 1.4M+ Indians, and in 2023, Indians made up 40% of all new permanent residents.

🇬🇧 United Kingdom: The Skilled Worker Route

Visa cost: ~£719–£1,500 ($900–$1,900), depending on length.
Immigration Health Surcharge: £1,035/year, paid upfront.
Upside: Easier entry than the U.S., strong demand in tech, healthcare, and finance. Indian students are the largest foreign student group in the UK (over 140,000 in 2023).

🇦🇺 Australia: A Friendly Option for Skilled Workers

Visa programs: Subclass 482 (Temporary Skill Shortage) and 189 (Skilled Independent).
Cost: AUD 4,640 (~$3,000) for main applicant.
Upside: Points-based system favors young, educated migrants; booming tech and healthcare sectors. Indians are already the second-largest migrant group in Australia.

🇺🇸 United States: The Costly Outlier

Visa program: H-1B.
Cost: Now $100,000 per new application (exempting renewals).
Upside: Still home to Silicon Valley and Fortune 500 opportunities—but only accessible to those whose employers can swallow the massive cost.

The Big Picture

Relative affordability: Canada, UK, and Australia charge between $1,000 and $3,000, while the U.S. just set a barrier of $100,000.
Permanent residency pathways: Canada and Australia offer clearer PR routes, making them even more attractive.
Talent flows: Expect a diversion of thousands of skilled Indians toward friendlier systems, reducing the U.S. share of global talent migration.

The U.S. just put a price tag on the H-1B dream: $100,000. For many Indians, that’s simply out of reach.

But paradoxically, this may be India’s gain. More talent, more jobs, more housing demand, more innovation—all staying in India.

As a 20-year-old studying economics, I see this less as a door closing and more as a pivot point. The U.S. may lose some of the world’s best minds, but India could gain a generation of builders who now have no reason to leave.