H-1B Fee
Moody's says US H-1B visa fee may slow India's services export growth, remittances
This story was originally published at 14:59 IST on 22 September 2025
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--Moody's: US H-1B fee changes may slow growth of India's services exports
--Moody's: US H-1B fee changes can reduce remittance inflows into India
--Moody's: India CAD to stay manageable despite US H-1B fee changes
NEW DELHI – The new $100,000 fee imposed by the US government on H-1B visa can slow the growth of India's services exports and reduce remittances to the country, Moody's Ratings said Monday. However, India's current account deficit is still likely to remain manageable, it added.
The US government Friday introduced a one-time fee of $100,000 for a new H-1B visa, which allows companies to hire foreign workers temporarily in the US on a non-immigrant basis in specialty occupations.
"While these US policy changes may slow the growth of India's services exports, fewer skilled workers going to the US could also reduce remittance inflows," Moody's said. "Still, current account deficits will stay within manageable levels," the rating agency said in a note.
India's services exports rose 10% on year to $33.74 billion in July while the current account deficit was 0.6% of GDP in 2024-25 (Apr-Mar). India is the top recipient of remittances in the world and received inward remittances of $137.7 billion in 2024.
The new visa fee can limit opportunities for Indian workers in the US. Indian technology and consulting firms such as Infosys, Wipro, and Tata Consultancy Services have used the programme to send Indian engineers, developers, consultants for projects in the US.
"The new H-1B visa fee will raise operating costs for Indian IT (information technology) services companies," Moody's said. "However, steady global demand for IT services will help offset some of these rising costs."
According to the rating agency, large IT firms like TCS and Infosys are better equipped to manage pressures from the visa fee because of their higher "profitability, strong balance sheets, and increased focus on local hiring over the last few years." End
US$1 = INR 88.30
Reported by Shubham Rana
Edited by Ashish Shirke
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