H-1B visa approvals for Indian IT firms fall by 70% since 2015
The Indian IT services sector has been facing a significant decline in H-1B visa approvals over the past few years. According to a report by the National Foundation for American Policy (NFAP), the number of H-1B visa approvals for Indian IT firms has dropped by a staggering 70% since 2015. This decline has had a profound impact on the industry, with many companies struggling to secure the necessary visas for their employees.
The NFAP report, which cites data from the United States Citizenship and Immigration Services (USCIS), reveals that the top seven Indian IT services companies secured just 4,573 initial-employment petitions in the fiscal year 2025. This marks a 37% reduction from the previous year, highlighting the ongoing challenges faced by these companies in securing H-1B visas. The report also notes that Tata Consultancy Services (TCS) was the only Indian IT company to feature among the top five firms in terms of H-1B visa approvals.
The decline in H-1B visa approvals for Indian IT firms can be attributed to several factors, including changes in the US immigration policy and increased scrutiny of visa applications. The Trump administration’s “Buy American and Hire American” executive order, issued in 2017, aimed to prioritize the hiring of American workers over foreign nationals. This policy shift has led to a more stringent review process for H-1B visa applications, resulting in a higher rejection rate for Indian IT firms.
Another factor contributing to the decline is the growing trend of IT companies opting for alternative visa options, such as the L-1 visa, which allows companies to transfer employees from their foreign offices to the US. However, this visa category is also subject to increased scrutiny, and companies are facing challenges in securing approvals.
The impact of the decline in H-1B visa approvals is being felt across the Indian IT services sector. Many companies are being forced to explore alternative options, such as hiring local talent or setting up delivery centers in other countries. This shift is likely to have a significant impact on the industry’s business model, as companies will need to adapt to the changing landscape and find new ways to deliver services to their clients.
The NFAP report highlights the need for the US government to reform the H-1B visa program to ensure that it is aligned with the needs of the American economy. The report suggests that the current system is flawed and is leading to a shortage of skilled workers in the US. The report also notes that the decline in H-1B visa approvals is not only affecting Indian IT firms but also other companies that rely on foreign talent to fill critical skill gaps.
The decline in H-1B visa approvals has also sparked concerns about the impact on the US economy. The NFAP report notes that the H-1B visa program is essential for the growth and competitiveness of the US economy, as it allows companies to access the best and brightest talent from around the world. The report suggests that the US government should consider reforms that would allow for a more efficient and effective visa process, one that balances the needs of American workers with the need for foreign talent.
In conclusion, the decline in H-1B visa approvals for Indian IT firms is a significant concern for the industry. The 70% drop in approvals since 2015 highlights the challenges faced by these companies in securing the necessary visas for their employees. The NFAP report suggests that the US government should consider reforms to the H-1B visa program to ensure that it is aligned with the needs of the American economy. As the Indian IT services sector continues to navigate this challenging landscape, it is essential for companies to explore alternative options and adapt to the changing business environment.
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