H-1B visa approvals for Indian IT firms fall by 70% since 2015
The Indian IT services industry has been facing significant challenges in recent years, and one of the major concerns has been the decline in H-1B visa approvals. According to a report by the National Foundation for American Policy (NFAP), Indian IT services companies have registered a staggering 70% drop in H-1B visa approvals since 2015. This decline has significant implications for the industry, which has been a major driver of economic growth and job creation in India.
The NFAP report, which cites data from the United States Citizenship and Immigration Services (USCIS), reveals that the top seven Indian IT firms secured just 4,573 initial-employment petitions in FY 2025. This marks a 37% reduction since last year, highlighting the continued decline in H-1B visa approvals for Indian IT companies. Tata Consultancy Services (TCS) was the only Indian IT company to feature among the top five firms, underscoring the challenges faced by other Indian IT majors.
The H-1B visa program is a non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations. The program is highly sought after by Indian IT companies, which rely heavily on H-1B visas to deploy skilled workers to client sites in the US. However, the program has been subject to increasing scrutiny and restrictions in recent years, making it more difficult for Indian IT firms to secure visas for their employees.
The decline in H-1B visa approvals has been attributed to several factors, including changes in US immigration policies, increased scrutiny of visa applications, and a rise in visa denials. The Trump administration’s “Buy American and Hire American” executive order, issued in 2017, has been particularly impactful, as it prioritizes the hiring of American workers over foreign nationals. Additionally, the USCIS has introduced new rules and regulations, such as the requirement for employers to provide detailed documentation of the visa applicant’s qualifications and work experience, which has made the visa application process more complex and time-consuming.
The impact of the decline in H-1B visa approvals on Indian IT firms has been significant. Many companies have been forced to explore alternative visa options, such as the L-1 visa, which allows for the transfer of employees from a foreign office to a US office. However, these alternatives are often more expensive and time-consuming, and may not provide the same level of flexibility as the H-1B visa. Additionally, the decline in H-1B visa approvals has led to increased project costs and delays, as companies struggle to find and deploy skilled workers to client sites.
The NFAP report highlights the need for the US government to reform the H-1B visa program to ensure that it continues to support the needs of US employers. The report suggests that the program should be modified to prioritize the hiring of foreign workers with advanced degrees and specialized skills, and to provide more flexibility for employers to deploy workers to client sites. Additionally, the report recommends that the USCIS should streamline the visa application process and reduce the processing time for visa petitions.
In conclusion, the decline in H-1B visa approvals for Indian IT firms is a significant concern for the industry, and highlights the need for reform of the US immigration system. The NFAP report provides valuable insights into the impact of the decline on Indian IT companies, and underscores the need for the US government to take steps to support the needs of US employers. As the Indian IT industry continues to evolve and adapt to changing market conditions, it is essential that the US government provides a supportive and enabling environment for Indian IT firms to operate and thrive.
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