The US has announced a landmark change to its skilled migration regime, imposing a one-time fee of USD 100,000 on all new H-1B petitions filed after September 21, 2025, with renewals and current holders exempt. Indian nationals, who accounted for ~71% of approvals in US FY24, are directly exposed, though for them most approvals are renewals, limiting the near-term impact. For the IT & ITeS sector, higher visa costs could pose headwinds, but structural shifts such as the declining share of on-site services, reduced reliance on H-1B visas, and rising US localisation, provide cushioning. Firms are also likely to adopt mitigation strategies, including greater use of L-1 visas, staff rotation, and expanded offshore delivery. India-based Global Capability Centres (GCCs) could be medium-term beneficiaries, though broader risks remain from parallel US legislative proposals such as the HIRE Act. On trade, it is encouraging that India–US negotiations have resumed, with cautious optimism for an interim deal by Q4-FY26 despite geopolitical headwinds.