Now Reading: Indian IT firms face little impact from new H-1B visa rules
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Indian IT firms face little impact from new H-1B visa rules
Indian IT companies are unlikely to be significantly affected by the new H-1B visa rules proposed by the Trump administration, as they have sharply reduced their dependence on the programme. The White…
Indian IT companies are unlikely to be significantly affected by the new H-1B visa rules proposed by the Trump administration, as they have sharply reduced their dependence on the programme. The White House announced the proposal on Monday, which includes a new $103,265 sponsorship fee for cap-subject petitions, aimed at generating an estimated $8.8 billion in revenue from 85,000 visa applications.
Nasscom, representing India's $315 billion IT industry, confirmed the reduced exposure on 25 August, highlighting that companies have expanded local hiring in the US over the past five years. Major firms such as Tata Consultancy Services, Wipro and Infosys have localised most of their American workforce, with only around 500 TCS employees now travelling on H-1B visas. The Nifty IT Index rose 0.6% after the announcement, reflecting muted concern across the sector.
Analysts caution that higher fees could still weigh on profit margins if onsite revenue shares rise. However, research indicates that past visa restrictions benefited India's tech sector by encouraging skilled workers to return home, with 15,100 technology professionals returning in 2025, according to talent consultancy Xpheno.
Indian Opinion Analysis
The H-1B programme has long been a flashpoint in US-India trade relations, with Indian IT firms historically among its largest users. The shift towards local hiring was accelerated by a 2017 federal court ruling that struck down an earlier $100,000 fee proposal, which the administration is still appealing. For Indian companies, the real cost may not be the visa fee itself but the operational expense of maintaining large US workforces, which could squeeze margins in an industry already facing pricing pressure. The next signal to watch is the outcome of the administration's appeal and whether other nations follow suit with similar fee structures, which could reshape the global talent market.
A separate concern is the impact on smaller Indian IT firms that lack the scale to localise quickly.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
