Shares in India’s largest IT services companies tumbled on Monday after US President Donald Trump announced a $100,000 application fee for H-1B visas, sparking fears of disruption across the country’s $283 billion outsourcing industry.

The Nifty IT index in Mumbai fell 3%, with Tata Consultancy Services sliding by the same amount, Infosys down 2.6%, Wipro off 2.2% and HCLTech losing 1.9%. The sharp sell-off came after Trump confirmed the dramatic fee hike on Friday, targeting skilled foreign worker visas that are crucial for India’s IT sector.

Indian citizens account for more than 70% of all H-1B visa holders in the US, with companies such as TCS, Infosys and Wipro heavily relying on the programme to send staff to American client sites. US giants including Amazon, Microsoft and Apple also employ thousands of workers under the scheme.

The announcement triggered confusion and disruption over the weekend as Indian professionals rushed to return to the US or cancel trips abroad. The White House later clarified that the fee would only apply to new applications starting with the next visa lottery in February, and would not affect existing H-1B holders.

Critics of the visa programme, including Trump, have long argued it allows companies to undercut US workers by importing cheaper labour from India. Supporters, such as Elon Musk, insist the visas have been vital in keeping America’s tech industry globally competitive.

The move is expected to further strain ties between Washington and New Delhi. Trump has already hit India with a 50% tariff on exports, citing its trade in Russian oil. India’s external affairs ministry said the visa decision was “likely to have humanitarian consequences by way of the disruption caused for families.”

For India’s tech sector, the new cost could make on-site deployments to the US far less viable, potentially forcing companies to accelerate local hiring in their largest market.