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 been steady, with the top seven Indian IT firms securing just 4,573 initial-employment petitions in FY 2025, marking a 37% reduction since last year.
The NFAP report, which cited data from the United States Citizenship and Immigration Services (USCIS), paints a grim picture for the Indian IT industry. The H-1B visa program is a crucial component of the industry’s business model, as it allows companies to hire skilled foreign workers to fill gaps in the US job market. However, the significant decline in approvals has forced Indian IT firms to rethink their strategies and explore alternative options.
One of the few bright spots in the report is the performance of Tata Consultancy Services (TCS), which was the only Indian IT company to feature among the top five firms in terms of H-1B visa approvals. TCS, which is one of the largest IT services companies in India, has been working to diversify its business and reduce its dependence on H-1B visas. The company has been investing in local talent and setting up delivery centers in the US to mitigate the risks associated with visa approvals.
The decline in H-1B visa approvals has been attributed to various factors, including changes in US immigration policies and increased scrutiny of visa applications. The Trump administration’s “Buy American, Hire American” policy has been particularly challenging for Indian IT firms, as it prioritizes the hiring of American workers over foreign nationals. The policy has led to increased scrutiny of H-1B visa applications, resulting in higher rejection rates and longer processing times.
The impact of the decline in H-1B visa approvals has been felt across the Indian IT industry, with many companies struggling to fill job openings in the US. The shortage of skilled workers has led to increased costs and reduced competitiveness, making it challenging for Indian IT firms to win new contracts and retain existing clients. The industry has been lobbying the US government to relax the H-1B visa rules and increase the annual quota, but so far, there has been little progress.
The NFAP report highlights the need for the US government to reform the H-1B visa program to make it more efficient and effective. The report suggests that the current system is flawed, with a complex and time-consuming application process that favors larger companies with more resources. The report recommends that the US government should introduce a more streamlined and transparent process, with clear guidelines and faster processing times.
In conclusion, the decline in H-1B visa approvals for Indian IT firms is a significant concern that needs to be addressed. The Indian IT industry is a major contributor to the US economy, and the shortage of skilled workers is hurting the industry’s competitiveness. The US government needs to reform the H-1B visa program to make it more efficient and effective, and Indian IT firms need to diversify their business models and reduce their dependence on H-1B visas. Only then can the industry thrive and continue to contribute to the US economy.
The data from the NFAP report is a wake-up call for the Indian IT industry, and it highlights the need for companies to adapt to the changing landscape. The industry needs to invest in local talent, set up delivery centers in the US, and explore alternative visa options to mitigate the risks associated with H-1B visas. The decline in H-1B visa approvals is a challenge, but it also presents an opportunity for Indian IT firms to innovate and transform their business models.
As the Indian IT industry navigates these challenges, it is essential to monitor the developments in the US immigration policies and the H-1B visa program. The industry needs to work closely with the US government, industry associations, and other stakeholders to advocate for reforms that benefit the industry and the US economy. The NFAP report is a valuable resource that provides insights into the trends and patterns in H-1B visa approvals, and it will be interesting to see how the industry responds to these challenges in the coming years.
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