The US government’s announcement of a $100,000 annual onetime fee for new H-1B visa applications has shaken India’s $283 billion IT services industry. With 71% of H-1B visa holders being Indian nationals and the US contributing 62% of IT export revenues, the move has triggered a sharp market reaction but it may also open up selective buying opportunities for long-term investors.

The Nifty IT Index has experienced a volatile cycle over the past year, marked by premium valuations in late 2024, a sharp correction in early 2025, and recent signs of stabilization. While long-term growth drivers remain intact, short-term earnings pressures and global uncertainties have weighed on sentiment.