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 securing 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 is a significant concern for the industry, as H-1B visas are a crucial component of the IT services business model.
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 the fiscal year 2025. This marks a 37% reduction in H-1B visa approvals compared to the previous year. The report highlights the significant decline in H-1B visa approvals for Indian IT firms over the past decade, with the number of approvals plummeting from 14,792 in 2015 to just 4,573 in 2025.
The decline in H-1B visa approvals is not limited to the overall numbers; the report also highlights the changing landscape of the top H-1B visa sponsors. In 2025, TCS (Tata Consultancy Services) was the only Indian IT company among the top five firms, with 1,424 initial-employment petitions approved. This is a significant drop from previous years, where multiple Indian IT firms featured in the top five.
The reasons behind the decline in H-1B visa approvals for Indian IT firms are complex and multifaceted. One of the primary factors is the changing US immigration policy, particularly under the Trump administration. The “Buy American and Hire American” executive order, signed in 2017, aimed to reform the H-1B visa program to prioritize American workers and reduce the reliance on foreign labor. This shift in policy has led to increased scrutiny of H-1B visa applications, resulting in fewer approvals for Indian IT firms.
Another factor contributing to the decline is the growing trend of digital transformation and automation in the IT services industry. As companies increasingly adopt digital technologies, the demand for traditional IT services has decreased, leading to a reduction in the need for H-1B visa holders. Additionally, the COVID-19 pandemic has accelerated the shift to remote work, reducing the need for IT professionals to be physically present in the US.
The decline in H-1B visa approvals has significant implications for the Indian IT services industry. Indian IT firms rely heavily on H-1B visas to deploy skilled professionals to client sites in the US. With fewer H-1B visa approvals, these companies may struggle to deliver projects and meet client demands, potentially leading to a loss of business and revenue.
Furthermore, the decline in H-1B visa approvals may also impact the competitiveness of Indian IT firms in the global market. As other countries, such as Canada and Australia, offer more favorable immigration policies, Indian IT firms may find it challenging to attract and retain top talent. This could lead to a brain drain, as skilled professionals seek better opportunities in other countries.
In response to the decline in H-1B visa approvals, Indian IT firms are exploring alternative strategies to mitigate the impact. Some companies are investing in local talent development, hiring more American workers, and establishing training programs to upskill existing employees. Others are exploring nearshoring options, setting up delivery centers in countries with more favorable immigration policies.
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 is a stark reminder of the challenges faced by Indian IT firms in securing skilled talent for their US operations. As the industry continues to evolve and adapt to changing market conditions, it is essential for Indian IT firms to develop strategies to mitigate the impact of declining H-1B visa approvals and maintain their competitiveness in the global market.
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