Overview

• Officials stressed that existing H‑1B visa holders and those seeking renewals are not subject to the new charge, which applies only to fresh petitions.
• Initial confusion triggered travel disruptions as companies urged H‑1B staff to stay put or return to the U.S., before guidance calmed the situation.
• Indian IT stocks slid on the news, with the Nifty IT index down more than 3% in early trade as investors weighed higher onshore staffing costs.
• Nasscom and several firms said near‑term impact should be marginal due to reduced dependency on new H‑1Bs and increased U.S. hiring and upskilling exceeding $1 billion.
• Analysts see limited immediate earnings effects but warn of medium‑term margin pressure and possible legal challenges, with one estimate putting potential employer costs near $14 billion annually if new‑visa volumes persist.