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, particularly when it comes to obtaining H-1B visas for its employees. 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 for their employees.
The NFAP report, which cites data from the United States Citizenship and Immigration Services (USCIS), revealed that the top seven Indian IT firms secured just 4,573 initial-employment petitions in Fiscal Year 2025. This marks a 37% reduction from the previous year, highlighting the ongoing struggles of the industry. Tata Consultancy Services (TCS) was the only Indian IT company to feature among the top five firms, demonstrating its resilience in the face of declining approvals.
The H-1B visa program is a critical component of the Indian IT services industry, allowing companies to employ foreign workers in specialty occupations such as software development, engineering, and finance. However, the program has been subject to increasing scrutiny and restrictions in recent years, making it more difficult for companies to secure the necessary visas. The Trump administration’s “Buy American, Hire American” executive order, which aimed to prioritize American workers over foreign nationals, has been particularly detrimental to the industry.
The decline in H-1B visa approvals has had far-reaching consequences for Indian IT services companies. Many firms have been forced to reduce their workforce or adjust their business models to accommodate the reduced number of visas available. This has resulted in increased costs, reduced competitiveness, and decreased revenue for the industry as a whole. Furthermore, the decline in H-1B visa approvals has also had a negative impact on the US economy, as Indian IT services companies are significant contributors to the country’s GDP and job market.
The NFAP report highlights the need for policymakers to reassess the H-1B visa program and consider the long-term consequences of restricting access to skilled foreign workers. The report suggests that the current restrictions on H-1B visas are not only harming Indian IT services companies but also limiting the growth and competitiveness of the US economy. By restricting access to skilled foreign workers, the US is essentially ceding ground to other countries that are more welcoming to international talent.
The decline in H-1B visa approvals has also led to increased competition for visas among Indian IT services companies. With a limited number of visas available, companies are being forced to compete aggressively for the remaining slots. This has resulted in increased costs, as companies are required to pay higher fees and invest more resources in the visa application process. Furthermore, the uncertainty surrounding H-1B visa approvals has made it challenging for companies to plan for the future, as they are unsure of whether they will be able to secure the necessary visas for their employees.
In addition to the challenges posed by the H-1B visa program, Indian IT services companies are also facing increased competition from other countries. Countries such as Canada, Australia, and Singapore are actively courting Indian IT services companies, offering more favorable business environments and easier access to skilled foreign workers. This has led to a significant shift in the industry, with many companies considering alternative locations for their operations.
The Indian government has also been actively engaged in efforts to support the IT services industry, recognizing the critical role it plays in the country’s economy. The government has been lobbying the US government to relax restrictions on H-1B visas and has also been exploring alternative visa programs that could provide more flexibility for Indian IT services companies. However, these efforts have been met with limited success, and the industry continues to face significant challenges.
In conclusion, the decline in H-1B visa approvals for Indian IT services companies is a significant concern for the industry. The 70% drop in approvals since 2015 has had a profound impact on the industry, with many companies struggling to secure the necessary visas for their employees. The NFAP report highlights the need for policymakers to reassess the H-1B visa program and consider the long-term consequences of restricting access to skilled foreign workers. As the industry continues to evolve, it is essential that policymakers find a solution that balances the needs of the US economy with the needs of Indian IT services companies.
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