Infosys & Wipro ADRs Dip Nearly 4% After Proposed $100,000 H-1B Visa Fee

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and listed in the U.S. fell by up to 4% following a proposal by the Trump administration to introduce a $100,000 annual fee per H-1B visa. The move has rattled markets, especially for companies that depend heavily on skilled foreign workers for U.S. operations and projects. What’s Driving the Concern * The proposed fee dramatically increases labor costs for IT firms using H-1B visas, undermining a long-standing cost arbitrage model. * Companies like Infosys and Wipro are exposed because a significant portion of their U.S. work depends on foreign technical talent. Higher visa costs might force them to absorb or pass on added expenses. * Investors reacted quickly, discounting potential earnings impacts and pushing ADR prices lower in anticipation of margin compression. Wider Implications for the IT Sector * This could accelerate shifts toward hiring more local talent in the U.S. or rebalancing delivery models to favor offshore work. * Contracts may be renegotiated or restructured to account for rising overheads. Companies with stronger U.S. power or local presence could gain a competitive edge. * The policy change adds regulatory risk to an already volatile business environment, especially for firms with thin margins. Long-term strategies may need reassessment. Takeaway The $100,000 visa fee proposal is more than a regulatory tweak—it threatens to upend cost structures for Indian IT firms with large U.S. exposure. Infosys and Wipro’s ADRs have taken a hit as markets weigh the potential fallout. How these companies adapt in terms of staffing, contract pricing, and delivery locations will likely shape their competitiveness in the near future. Source: The Economic Times No Recommendations