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News: As per The Economic Times, the US may increase fees for certain visa categories. As per the report if the move is approved registration fees for H1-B visas would increase from US$10 to US$215 and the petition fees would increase by 70%
Views: Indian IT companies are biggest beneficiaries of H-1B visas as they utilise the visa to deploy its workforce onsite. Visa cost for the IT companies are generally included in travelling expense so it could be low single digit as a % of sales. Higher visa costs mean companies may have to incur higher subcontractor costs or find a midway to balance visa and subcontractor costs. We believe the impact may not be significant in a low demand scenario.
Impact: Negative