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 most notable issues 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 had a profound impact on the industry, with many companies struggling to secure the necessary visas to bring skilled workers to the United States.
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 ongoing challenges faced by the industry. The report also notes that Tata Consultancy Services (TCS) was the only Indian IT company among the top five firms to receive H-1B visa approvals.
The decline in H-1B visa approvals has been a gradual process, with the number of approvals decreasing steadily over the past few years. In 2015, Indian IT firms received over 15,000 H-1B visa approvals, but this number has been declining steadily since then. The NFAP report attributes this decline to changes in US immigration policies, including the introduction of new rules and regulations that have made it more difficult for companies to secure H-1B visas.
The H-1B visa program is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations, such as IT, engineering, and finance. The program is highly competitive, with a limited number of visas available each year. Indian IT firms have historically been among the largest users of the H-1B visa program, but the decline in approvals has forced many companies to rethink their strategies and explore alternative options.
The impact of the decline in H-1B visa approvals has been significant, with many Indian IT firms struggling to secure the necessary talent to meet the demands of their US clients. This has led to increased costs, as companies are forced to hire more expensive local talent or outsource work to other countries. The decline in H-1B visa approvals has also had a negative impact on the US economy, as it has limited the ability of US companies to access the skilled talent they need to compete in the global market.
The NFAP report notes that the decline in H-1B visa approvals is not limited to Indian IT firms, with many other companies also experiencing a decline in approvals. However, the impact on Indian IT firms has been particularly significant, given their historical reliance on the H-1B visa program. The report also notes that the decline in H-1B visa approvals has been driven by a number of factors, including changes in US immigration policies, increased scrutiny of visa applications, and a growing trend towards protectionism in the US.
In response to the decline in H-1B visa approvals, many Indian IT firms have been exploring alternative options, such as nearshoring and offshoring. Nearshoring involves setting up operations in nearby countries, such as Canada or Mexico, while offshoring involves setting up operations in more distant countries, such as India or the Philippines. These strategies have allowed companies to access the talent they need while avoiding the challenges associated with the H-1B visa program.
However, these strategies are not without their challenges, and many companies are still struggling to adapt to the new reality. The decline in H-1B visa approvals has also led to increased competition for talent in the US job market, as companies are forced to hire more local talent to meet their needs. This has driven up salaries and benefits, making it even more challenging for companies to secure the talent they need.
In conclusion, the decline in H-1B visa approvals for Indian IT firms has been significant, with a 70% drop in approvals since 2015. The NFAP report highlights the challenges faced by the industry, including changes in US immigration policies, increased scrutiny of visa applications, and a growing trend towards protectionism in the US. While many companies are exploring alternative options, such as nearshoring and offshoring, the decline in H-1B visa approvals remains a significant challenge for the industry.
As the US immigration landscape continues to evolve, it is likely that the challenges faced by Indian IT firms will only continue to grow. The industry will need to adapt to the new reality, exploring new strategies and options for securing the talent they need to compete in the global market. However, for now, the decline in H-1B visa approvals remains a significant challenge, with far-reaching implications for the industry and the US economy as a whole.
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