India Could Benefit as U.S. H-1B Fee Pushes Talent Home

(UNITED STATES) Raghav Gupta, founder and CEO of Futurense, says the new U.S. H-1B fee hike—a $100,000 charge on new petitions filed after September 21, 2025—will push many of India’s best students and professionals to rethink America as their first choice. Announced by President Trump on September 19, 2025, the measure sets a one-time fee on initial H-1B filings, a sharp jump from previous costs of only a few thousand dollars. It does not apply to renewals or already approved visas.

Gupta argues the move could shift global talent flows, keeping more Indian talent at home or sending them to the U.K., Canada 🇨🇦, Australia, and Europe, where paths are seen as steadier and more predictable.

Why this matters now

For years, the United States 🇺🇸 has been the top pick for Indian students and early-career engineers. According to Gupta, roughly three in ten Indian students heading overseas choose America. With higher costs and policy swings, he expects a realignment: students and employers will compare total cost, timelines, and odds of success across countries, not just job offers in Silicon Valley.

VisaVerge.com reports that such a price barrier could change company hiring plans and lead students to pick countries with lower upfront costs and clearer work-to-residency paths.

The new fee is a major upfront cost that will likely change who gets sponsored and where talent decides to go.

How the fee is designed and who it affects

• The $100,000 fee applies only to new H-1B petitions filed after the effective date (September 21, 2025).
• Renewals and already approved visas are exempt, softening the immediate impact for current H-1B workers.
• Officials say the fee aims to protect U.S. workers by discouraging heavy inflows of foreign labor in high-demand tech roles.

Primary impacts:

• Employers and startups that rely on global recruiting will bear the brunt of the cost.
• Smaller firms and entry-level candidates are most vulnerable — startups may not have budgets to sponsor new hires.
• Employers may reserve H-1B filings for senior hires while shifting junior roles abroad or leaving them unfilled in the U.S., according to VisaVerge.com.

Policy change and Indian talent response

Gupta, whose company Futurense trains and places technology professionals, forecasts two broad shifts:

1. More students and young engineers will choose countries with steadier rules and lower costs — notably the U.K., Canada, Australia, and parts of Europe.
2. A surge in top graduates choosing to stay in India, attracted by deeper local opportunities in AI, chip design, and research.

He frames this not only as a setback for the U.S., but as a chance for India to build the “innovation density” needed for global leadership — clusters of talent, capital, and research that feed on each other.

Other education leaders echo the theme:

• Dr. Pavitar Parkash Singh (Lovely Professional University) warns the U.S. could face a long-term intellectual loss in labs, startups, and patent filings.
• Prof. Chandan Gowda (Vidyashilp University) urges India to build new universities, improve research labs, and strengthen teaching so fewer students feel compelled to leave.

If India pairs talent retention with stronger institutions, the country could accelerate R&D and advanced tech growth.

Impact on applicants, employers, and alternatives

The fee shift changes the risk calculus for Indian graduates aiming at H-1B roles. Although the $100,000 is paid by employers, higher costs can affect:

• Pay offers
• Number of sponsored roles
• Which candidates receive sponsorship

Likely employer responses:

• Large tech firms: may still sponsor, but prioritize senior or niche roles.
• Mid-size companies: may reduce campus hiring or shift to contractor models outside the U.S.
• Startups: may skip sponsorship entirely or open engineering hubs abroad.

Where candidates might go instead:

• United Kingdom: attractive for post-study work routes and employer sponsorship options.
• Canada: known for clear study-to-work transitions and defined permanent residence pathways.
• Australia and parts of Europe: offer stable rules and skills-based systems that make planning easier.

Gupta believes these countries will compete harder for Indian graduates if the U.S. becomes costlier at entry.

Practical U.S. filing details

• Employers file Form I-129 to request H-1B classification.
• Many use Form I-907 to request premium processing.
• While regular filing fees remain standard, the new $100,000 fee for initial petitions adds a major cost layer where applicable.

For official program details and forms, see the USCIS resources:

• USCIS H‑1B overview: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations

Employers completing petition packages can find Form I-129 and Form I-907 on the USCIS site.

Near-term effects and what to watch

• VisaVerge.com notes the exemption for renewals will soften the immediate shock for existing workers, but graduating students hoping to start new roles next year will face the biggest impact.
• Universities may see fewer applicants to U.S. programs if job prospects after graduation worsen.

Supporters say the policy should spur the U.S. to train and hire more local graduates. Critics warn that immigrant workers fill real skill gaps and help create companies and jobs. Both can be true: the U.S. can invest in local training while keeping doors open to global experts. The balance will depend heavily on how price signals like the $100,000 fee reshape incentives.

Advice from Gupta: what students and employers should do

For students:

• Consider the entire pathway: study → work → residency — not just the first job.
• If staying in India offers strong roles and research options, weigh that seriously.
• If aiming for the U.K., Canada, Australia, or Europe, map how study leads to work permits and permanent residence.
• For U.S.-bound applicants: discuss candidly with employers about sponsorship budgets and timelines.

For employers — planning steps:

1. Reassess workforce needs and identify roles that justify the H-1B fee hike.
2. Budget for the one-time cost on new filings and evaluate alternatives (remote teams, near-shore hires).
3. Be transparent with candidates about sponsorship decisions and timing.
4. Track policy updates closely for guidance on implementation windows or exceptions.

Policy implications for India

Experts say this is a window for Indian policymakers and universities to act:

• Build new research universities and fund Ph.D. programs.
• Deepen industry-academia partnerships.
• Offer grants for labs, tax credits for R&D, and smoother rules for startups to hire globally competitive talent.
• Update curricula to make graduates job-ready in fields like machine learning and semiconductor design.

If India turns a potential outflow into a stronger domestic engine, Gupta believes the country can raise its innovation capacity faster than expected.

The debate over the H-1B fee hike goes beyond numbers. Families invest years and savings for study and migration plans; sudden cost jumps and policy shifts carry human consequences, especially for early-career people least able to absorb shocks.

Final outlook

As the effective date approaches, universities, employers, and students will watch for official guidance on practical questions — how the fee is collected, whether categories are excluded, and how it applies during the annual H-1B cycle.

The broad outline is set: a steep, one-time charge on new H-1B petitions after September 21, 2025, renewals not affected, and a stated policy rationale focused on protecting U.S. workers. Whether that leads to fewer filings or merely changes who gets sponsored, Gupta’s central point remains: global talent flows will adjust quickly.

Futurense’s warning is both a caution for the U.S. and a signal to India. If America raises barriers and India builds capacity, the center of gravity for certain tech fields could shift. The next cohort of AI researchers, chip architects, and product builders may choose to start their careers closer to home — or in countries that promise steadier ground. In that race, policy choices on fees, timelines, and post-study work will matter as much as salaries and brand names.