The Ministry of External Affairs has formally raised concerns with the United States regarding significant delays in H-1B visa processing affecting thousands of Indian nationals. On December 26, MEA spokesperson confirmed that India expects these concerns to be addressed by US authorities as widespread interview cancellations and enhanced vetting measures create major disruptions for Indian professionals.

Government Response and Diplomatic Engagement

MEA spokesperson Randhir Jaiswal confirmed that the government has received numerous representations from Indian nationals facing problems with rescheduled visa appointments. "We have flagged these issues and our concerns to the US side, both here in New Delhi and in Washington, DC," Jaiswal told reporters.

While acknowledging that visa-related matters fall under the sovereign authority of individual countries, India expects the US to address the delays and disruptions affecting H-1B and H-4 visa applicants. The government remains actively engaged with US authorities to minimize disruptions caused to Indian nationals.

Enhanced Vetting Measures and Processing Delays

Starting December 15, the US Department of State expanded online presence reviews to all H-1B and H-4 applicants globally as part of standard visa screening. This social media vetting process covers applicants of all nationalities for both new applications and renewals.

Consular officers now review applicants' social media activity across multiple platforms, with the US Embassy advising applicants to keep their profiles public to facilitate screening.

Mass Interview Cancellations and Impact

Thousands of H-1B visa applicants have experienced abrupt postponements of their pre-scheduled interviews, creating significant challenges for Indian workers:

US Embassy Warning Against Visa Scams

Amid processing delays, the US Embassy in India issued an advisory on December 26 warning applicants against fraudulent messages and agents offering guaranteed visas or faster approvals in exchange for money. "Visa scams and fraud are more common than you think, and they can cost you time, money, and your travel plans," the embassy stated.

The embassy emphasized that the only way to obtain a US visa is through official channels, with appointments bookable exclusively through www.ustraveldocs.com . Officials urged applicants to remain vigilant and rely only on credible sources to avoid falling victim to fraud.

Broader H-1B Program Changes

The developments occur as the US undertakes broader changes to its H-1B program. The Department of Homeland Security has announced plans to replace the lottery-based H-1B selection system with a weighted model prioritizing higher-paid and higher-skilled workers from the FY2027 cap registration season, while retaining the existing annual visa cap.

The H-1B visa program remains crucial for US technology companies to employ foreign workers, with Indians forming the largest group of H-1B visa holders. The diplomatic engagement between India and the US highlights the significant impact of visa processing delays on the large Indian professional community working in American technology sectors.

Indian IT services companies face immediate market pressure as shares fell up to 2% following the Trump administration's implementation of significant H-1B visa policy changes. The Department of Homeland Security announced on Tuesday that a new wage-weighted selection process will replace the current lottery system, while a federal judge approved the controversial $100,000.00 visa fee.

New H-1B Selection Framework Takes Effect

The revised US system fundamentally changes H-1B application processing by eliminating the random lottery method in favour of wage-weighted selections. The new process takes effect from February 27, 2026, and will apply starting with the financial year 2027 H-1B cap registration season. According to USCIS, the random process was previously abused for lower wage imports, and the changes aim to provide greater protection for American workers.

Under the new framework, each beneficiary's registration receives multiple entries based on wage levels:

Market Impact and Stock Performance

Shares of major Indian IT companies declined significantly on Wednesday, December 24, with the Nifty IT index experiencing broad-based selling pressure. The market reaction reflects investor concerns about the combined impact of policy changes and the substantial visa fee increase.

Financial Impact Assessment

US District Judge Beryl Howell ruled that President Trump's move to increase H-1B visa costs to $100,000.00 is lawful, adding significant financial pressure on IT companies. Industry analysis suggests the fee structure could substantially impact profit margins across the sector.

Sandip Agarwal, fund manager at Sowilo Investment Managers, previously estimated the overall impact on Indian IT margins at 6-7%. His analysis indicates that with top five Indian IT companies generating $80.00 billion in revenue and approximately 10,000 visas annually, the $1.00 billion additional cost represents a significant portion of the sector's $16.00 billion total margins.

Reduced Industry Dependence Provides Buffer

Despite market concerns, Indian IT companies have significantly reduced their H-1B visa dependence over recent years through strategic workforce transformation. Most firms now operate predominantly localised US workforces, which may help mitigate the policy impact.

The strategic shift towards local hiring, near-shore delivery centres, and increased offshore execution positions Indian IT companies more favourably than in previous policy cycles, though immediate market sentiment remains cautious as the new regulations take effect.