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

For decades, the H-1B visa has served as a vital link 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. However, in September 2025, everything changed. The U.S. government imposed a $100,000 fee on all new H-1B applications—a staggering 200-fold increase from just two years prior.

This shift isn't merely about visas; it impacts 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. Here’s a quick look at the costs:

• 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 struggle to justify.

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

For Indian startups, especially early-stage ones, this change alters the landscape dramatically.

• Seed-stage founders can’t afford to burn 5–10% of their funding on a single visa.

• Remote-first models will likely become the norm: build in Bengaluru, sell via Zoom, and partner for a U.S. presence.

• Even unicorns will reserve visas for senior executives only.

  
  

India’s IT exports reached $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, however, we see a different trend:

• More talent stays home: IIT and NIT graduates may never attempt the $100k visa gamble.

• Wage premium in India: Mid-career developers could see 10–15% salary hikes as domestic demand increases.

• Global Capability Centers (GCCs) in India—already employing 1.6 million people—will expand faster as multinationals scale their Indian campuses.

  
  

This phenomenon can be termed “reverse brain drain,” or as I prefer to call it: brain stay.

Real Estate: A Subtle Rerouting of Demand

Less migration doesn’t necessarily mean less housing demand; it simply shifts where that demand occurs.

• More local rentals: Engineers staying in Bengaluru, Hyderabad, Pune, and NCR will drive stronger leasing demand.

• NRI housing remains robust: Overseas Indians invested $15 billion in Indian real estate in 2024, with expectations to reach $25 billion by 2030.

• Urban absorption: Knight Frank data indicates double-digit year-on-year growth in home sales in 2024; this policy could reinforce that trend.

  
  

Remittances & Services: India’s Safety Net

India remains the world’s #1 remittance recipient.

• 2015: $69 billion

• 2023: $125 billion

  
  

Even if U.S. flows soften, the Gulf and Europe remain strong. Additionally, with $340 billion in services exports in FY 2024, India has a cushion against migration shocks.

Jobs & Students

• IT jobs: Companies like Infosys, TCS, Wipro, and HCL (with over 1.5 million 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, the UK, and Australia to capture more 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.

• A partial recovery followed, but volatility remains. Infosys and Wipro ADRs each dipped 3–4%, reflecting cost fears.

  
  

Long-Term Outlook

1. India as the world’s office: With relocations curtailed, companies will double down on India-based delivery.

2. Diversified migration: Young Indians will look to Canada, the UK, and Australia instead of only the U.S.

3. Domestic innovation boost: More senior engineers will stay in India, fueling SaaS, AI, and fintech startups.

4. 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 the U.S. green card backlog).

• Upside: Direct path to permanent residency; Canada already hosts 1.4 million+ 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., with 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 the 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 absorb the massive cost.

  
  

The Big Picture

• Relative affordability: Canada, the UK, and Australia charge between $1,000 and $3,000, while the U.S. has 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. has effectively placed a price tag on the H-1B dream: $100,000. For many Indians, that’s simply out of reach. However, this could paradoxically benefit India. More talent, more jobs, more housing demand, and more innovation—all staying in India.

As a 20-year-old studying economics, I view this not as a door closing but as a pivotal moment. 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.

In this new landscape, we must adapt and innovate. The future is bright for those willing to embrace change.