Gajendra Singh Godara
Sep 26, 2025
15
mins read
The H-1B visa is a U.S. non-immigrant (temporary work) visa for specialty occupation professionals. U.S. law defines a specialty occupation as a role requiring “highly specialized knowledge” and at least a bachelor’s degree (or equivalent) in a relevant field.
Essentially, H-1B allows Indian and other foreign professionals (especially in IT, engineering, medicine, etc.) to work in the U.S. on a temporary basis. This blog will explain what H-1B visa means, how to apply, eligibility criteria, fees and validity, the path to a green card, and its significance for India–US relations and UPSC topics.
Recent U.S. policy changes have thrust the H-1B visa into the spotlight. In late 2024 the Department of Homeland Security issued a final rule to modernize the H-1B program, and in 2025 proposals were announced (e.g. a $100,000 one time fee) that could drastically limit large-scale H-1B hiring. These measures primarily affect Indian IT and engineering professionals, who hold roughly 70–72% of all H-1B visas.
Table of content
“H-1B” is the classification code for this visa; it is often called the “Specialty Occupations” visa. There is no acronym expansion beyond this code, but the meaning is that the H-1B is a specialty occupation visa. In practice, it means a U.S. employer can petition to hire a foreign professional in a skilled job that typically requires at least a bachelor’s degree. For example, an engineer or IT specialist must hold a relevant degree or its equivalent, and the job duties must require that level of education.
Specialty Occupation: The job must be a “specialty occupation,” i.e. one that normally requires theoretical and practical application of specialized knowledge – typically needing a bachelor’s degree in the field.
Educational Qualifications: The applicant (beneficiary) must possess at least a U.S. bachelor’s degree (or foreign equivalent) in the relevant field. In some cases, equivalent work experience or state licensure can substitute for a degree.
Employer Sponsorship: A U.S. employer must sponsor the visa. The employer files an approved Labor Condition Application (LCA) from the Department of Labor and then petitions USCIS using Form I-129 on the worker’s behalf. Self-petitioning is generally not allowed (except in special entrepreneurial cases).
Prevailing Wage: By LCA rule, the employer must pay the H-1B worker at least the prevailing wage (or the actual wage for similarly qualified workers) for that job and location. The employer also attests not to adversely affect U.S. workers’ wages or conditions.
Cap-Exempt Employers: Certain entities are exempt from the annual H-1B cap. These include institutions of higher education, affiliated non-profits, and research organizations. H-1B workers at such cap-exempt employers can obtain visas year-round without being subject to the quota.
The H-1B application is a multi-step, employer-driven process:
Labor Condition Application (LCA): The employer applies to the U.S. Department of Labor for a certified LCA, attesting to payment of the prevailing wage and proper working conditions.
Electronic Registration & Lottery: Each spring (usually March), USCIS opens an online registration period (at least 14 days long) for cap-subject H-1B petitions. Employers submit basic candidate details. If the number of registrations exceeds the available visas (85,000 total per fiscal year – 65,000 regular plus 20,000 for U.S. master’s/PhD holders), USCIS conducts a random lottery. Selected registrations are notified electronically.
Petition Filing (Form I-129): For each selected registrant, the employer files the full H-1B petition (Form I-129) with USCIS, including the LCA and supporting documents (degree proof, job offer, etc.). Petitions are typically filed in early April for an October 1 start date.
USCIS Adjudication: USCIS reviews the petition. If approved, USCIS issues an I-797 Approval Notice.
Visa Issuance & Entry: The beneficiary applies for an H-1B visa stamp at a U.S. consulate abroad (or adjusts status if already in the U.S.). Upon visa approval, the worker may enter the U.S. to begin employment from the start date (often Oct 1 of that year).
Key Point: If a beneficiary is not selected in the lottery, no H-1B petition can be filed for that year. Only those who win the lottery move on to the petition stage.
Validity Period: An H-1B visa is generally issued for an initial period of up to 3 years, and can be extended once for another 3 years (total 6 years). Extensions beyond 6 years are possible in limited cases if a green-card (permanent residency) petition is pending.
Portability: H-1B workers can change employers. The new employer must file a new H-1B petition, but the worker may begin employment with the new employer as soon as the petition is filed (portability under AC21).
Grace Period: If an H-1B worker is terminated or resigns, they have a 60-day grace period (or until the visa expiration, whichever is shorter) to find a new employer, change status, or leave the U.S..
Dependent Status: Spouses and children (under 21) of H-1B holders come under the H-4 visa. (Note: H-4 spouses may apply for work authorization only under narrow conditions, such as when the H-1B worker has an approved green-card petition.)
H-1B Fees (USCIS Filing Fees): As of 2024, the USCIS filing fees have increased. For a standard H-1B petition (Form I-129): the base filing fee is $780 (up from $460). Small businesses and non-profits still pay the lower $460 rate. Other mandatory fees include the Fraud Prevention & Detection Fee ($500 for initial or change-of-employer H-1Bs) and the ACWIA training fee ($750 or $1,500 depending on employer size). Premium processing (15-day service) costs $2,805.
In 2025, a new $100,000 one time fee was proposed for each H-1B visa (aimed at large employers). The table below summarizes key fee components:
Fee Component | Amount (USD) | Applies to |
Base filing fee | 780 (460*) | Form I-129 H-1B petition |
ACWIA training fee | 750 / 1,500 | Education/Training fee (varies by employer size) |
Fraud prevention fee | 500 | Paid by employer on initial/change H-1B petitions |
Premium processing | 2,805 | Optional expedited processing (15 days) |
Proposed new H-1B fee | 100,000 | Large firms (from Sept 2025 proposal) |
* Note: Small or cap-exempt employers continue to pay the lower base fee of $460.
H-1B is a temporary work visa, but holders often seek permanent residency. Employers can sponsor H-1B workers for a green card through the employment-based (EB-2 or EB-3) categories. This involves a labor certification (PERM) and an I-140 petition. However, Indian applicants face extremely long waits due to per-country limits.
In other words, only applicants who filed over a decade ago are currently being approved. The backlog is enormous: about 1.8 million people are waiting for employment-based green cards, of which roughly 1.1 million are Indian nationals. In practice, this means many Indian H-1B holders must renew or maintain status for years without knowing if a green card will arrive.
Indian Share: Indian nationals dominate H-1B usage. In FY2023 about 72% of approved H-1Bs went to Indians, consistent with USCIS data. Major Indian IT firms (Infosys, TCS, Wipro, HCL) sponsor thousands of H-1B workers each year.
Economic Impact: H-1B workers have boosted India’s economy via remittances. In FY2024–25, India’s diaspora sent a record $135.5 billion home (14% growth), making India the top global remittance recipient. A significant portion of these remittances comes from high-skilled migrants in the US, UK, and Singapore (as noted by RBI data).
Tech Sector Influence: Indian professionals on H-1Bs have climbed to leadership roles in U.S. tech. The U.S. economy “relies heavily on Indian talent” in STEM fields. Many Indians lead major tech companies or work in critical research roles.
Policy Shifts: Recent U.S. policy changes (e.g. higher fees, stricter rules on “specialty occupations”) thus have outsized effects on India–US relations. Delays or restrictions on H-1B issuance can influence bilateral talks on trade and technology collaboration. Conversely, India’s own focus on retaining talent is highlighted by these diaspora flows.
Impact on Indian Professionals and Families
The sudden policy announcement created confusion and panic among Indian professionals, causing many to cancel family visits, rush travel plans, and face uncertainty about job continuity and high return costs.
Families were separated and missed out on major life events, representing a significant human cost and straining India-US people-to-people ties.
IT Sector Response and Market Turbulence
Shares of Indian tech companies declined initially, but most major firms have already reduced dependence on H-1B visas by hiring locally in the US and expanding offshore operations.
Industry leaders suggested the disruption may accelerate adjustment to new business models and reinforce India’s competitive advantage.
Strategic Implications for India's Talent Ecosystem
The policy may lead to a “reverse brain drain,” encouraging skilled professionals to build careers in India, boosting domestic innovation and tech talent retention.
Companies may expand operations and Global Capability Centers in India, making the country a hub for high-value technology work.
Diplomatic Response and Policy Adaptation
India’s government is engaging the US diplomatically, emphasizing the mutual benefits of talent exchange while addressing humanitarian concerns.
Official messaging is positioning the challenge as a catalyst for home-grown innovation and maintaining a cooperative bilateral relationship.
Long-Term Consequences for Innovation
US companies could face shortages in specialized skills, especially in emerging tech, making acquisition of talent costlier and slower.
This dynamic strengthens India’s position to capture more global technology services and may inspire other countries to attract skilled talent with friendlier policies.
Economic Ramifications and Market Dynamics
Smaller US firms and startups that cannot afford the fee may struggle to access the talent needed for innovation and growth.
Indian IT companies can capture more market share and expand service offerings as visa limitations penalize domestic US hiring and subsidize offshoring.
Visa Cap & Lottery: Only 85,000 new H-1B visas are available each fiscal year (65k general + 20k for U.S. master’s/PhDs). Demand far exceeds supply – for example, in 2025 there were roughly 780,000 registrations for 85,000 visas. This lottery system creates uncertainty and means many qualified applicants go unselected.
Green Card Backlog: Even after obtaining H-1B status, Indians face a “backlog” for permanent residence. Annual country limits (7% per country) have left Indian EB-2/EB-3 applicants waiting over a decade. Employer Dependency: An H-1B worker’s status is tied to the sponsoring employer. If the job ends, the worker has only a short grace period (60 days) to find a new sponsor. This can limit mobility and bargaining power, and creates stress for workers who may lose status if employment ends.
Policy Uncertainty: U.S. immigration policies can change abruptly. Recent proposals (like the $100k fee or stricter specialty-occupation definitions) have raised concerns that H-1B prospects can be altered overnight by political shifts.
Critiques of “Brain Drain”: Some commentators in India worry that the H-1B program facilitates a “brain drain” of skilled talent to the U.S., though others argue it creates a global knowledge network.
FAQ's
Q. What does an H-1B visa mean?
A. It’s a U.S. non-immigrant work visa for skilled foreign professionals in specialty occupations (jobs requiring highly specialized knowledge and typically a bachelor’s degree). Essentially, an H-1B allows qualified foreign nationals (like engineers, IT experts, researchers) to work temporarily in the U.S..
Q. What are H-1B visa requirements?
A. The main requirements are: (1) The job must be a specialty occupation (i.e. normally requiring a bachelor’s or higher in the field). (2) The applicant must hold the requisite degree (or equivalent). (3) A U.S. employer must sponsor the visa, first obtaining a certified Labor Condition Application and then filing Form I-129 for that worker.
Q. How long is H-1B visa validity?
A. An H-1B visa is usually valid for 3 years initially, and can be extended once for another 3 years (total 6 years). Extensions beyond 6 years are rare but possible if green-card processing is underway. In practice, many H-1B holders renew once to reach 6 years.
Q. Can H-1B visa holders get a green card?
A. Yes. H-1B holders can pursue employer-sponsored permanent residency. Typically, the employer files a PERM labor certification and I-140 petition. However, because of strict per-country limits, Indians face very long delays. The “visa bulletin” shows India’s EB-2/EB-3 dates are stuck a decade old, meaning most Indian applicants wait many years (often over a decade) before receiving a green card.
Conclusion
In summary, the H-1B visa is a key legal channel for skilled foreign workers (especially Indians) to work in the U.S. It requires a specialty-occupation job, a relevant degree, and employer sponsorship (LCA and petition). The process involves electronic registration, a lottery, and USCIS adjudication. H-1B status is valid for up to 6 years and can lead to a green card, although Indians often face long backlogs. The program’s fees and policies have significant implications: for Indian professionals, for bilateral relations, and for topics like migration and economic diplomacy.
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