Indian IT firms cut H-1B visas to 7-year low amid costs and AI shift

Indian IT companies have slashed fresh H-1B visa applications to their lowest level in seven years, as higher immigration costs, a revamped lottery system and growing use of artificial intelligence reshape hiring plans. Greatandhra.com reports that USCIS data shows eligible registrations fell 38.5% to 211,600 for fiscal year 2027, down from 3,43,981 a year earlier and a peak of 7,58,994 in 2024.

Immigration experts attribute the drop to a proposed DHS rule that could add $4,000 to $4,500 in fees per H-1B or L-1 extension for certain employers, and to increasing automation of routine work. Separately, the Times of India reports that EB-1A green card approvals for Indian applicants have fallen sharply to a 35% approval rate in the first half of FY26, compared with 49.1% in FY25, amid what attorneys describe as tougher scrutiny under the Trump administration.

Attorneys say some skilled workers are now exploring alternatives, including Canada's Global Talent Stream, the UK's Global Talent visa, or returning to India. The proposed DHS fee rule has not been finalised, and existing approvals remain valid for now.