The U.S. administration’s decision to impose a steep $100,000 annual fee on H-1B visa applications with just a one-day implementation deadline has raised concerns across the global technology sector. India’s IT industry body Nasscom warned on Saturday that the move could create ripple effects on America’s innovation ecosystem and wider job economy.

Signed by U.S. President Donald Trump, the proclamation mandates that anyone entering the U.S. after 12:01 a.m. on September 21 will be subject to the new fee. Nasscom criticized the abrupt rollout, saying, “Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption.”

The apex industry body stressed that the policy will impact Indian professionals on H-1B visas and could disrupt onshore projects for both global and Indian technology firms. Additional costs, it noted, would require adjustments and close coordination with clients to ensure business continuity.

At the same time, Nasscom highlighted that Indian IT firms have been steadily reducing dependence on H-1B visas by investing in local hiring and training in the U.S. The industry also follows strict compliance on wages and governance, contributing significantly to the local economy, research collaborations, and startup ecosystems.

Rejecting claims that H-1B workers pose security risks, Nasscom argued that high-skill talent is essential for America’s competitiveness. With artificial intelligence and other frontier technologies driving the next phase of global growth, access to global talent remains critical for U.S. innovation leadership.

Nasscom said it is reviewing the finer details of the order and will continue engaging with stakeholders to seek clarity, including on discretionary waivers that may be granted by the Department of Homeland Security.