H1B visa approvals for Indian IT companies have seen a significant fall over the past decade, raising concerns within the industry about future hiring and global operations. According to a fresh analysis by the National Foundation for American Policy, based on data from the United States Citizenship and Immigration Services, the seven largest India-based IT firms secured only 4,573 H1B visas for initial employment in FY25. This marks a sharp 70 percent decline compared to FY15 and a 37 percent drop from the previous financial year.
The report highlights that H1B petitions for initial employment are primarily meant for new hires and are counted under the annual H1B quota of 65,000 visas, with an additional 20,000 reserved for candidates holding US master’s degrees or higher. A decade ago, Indian IT firms were among the largest beneficiaries of this program. However, only three India-based companies managed to secure a place among the top 25 H1B employers in FY25, a sharp contrast to earlier years when Indian companies dominated the list.
Industry analysts say this fall is the result of multiple structural and policy-related factors. One of the major reasons is the tightening of visa scrutiny in the United States over the past several years. Increased compliance requirements, longer processing times, and higher rejection rates have made it difficult for offshore IT firms to rely heavily on the H1B program. At the same time, US companies are increasingly prioritizing domestic hiring to meet regulatory expectations and reduce dependency on foreign workers.
Another important factor is the changing business model of Indian IT firms. Many companies are moving toward hiring locally within the US market rather than sending large numbers of employees from India. This shift helps them stay closer to clients, meet contractual requirements, and align with evolving regulatory frameworks. In recent years, Indian IT giants have invested heavily in setting up delivery centers across US cities, creating thousands of local jobs.
Automation and the adoption of artificial intelligence are also influencing workforce requirements. As companies rely more on digital platforms, cloud services, and automation tools, the demand for traditional onsite roles has reduced. This technological transformation is reshaping hiring strategies across the global tech industry.
Despite the sharp decline, experts believe that Indian IT firms are not facing an immediate crisis. Instead, the industry is going through a phase of realignment. The focus is shifting from volume-driven visa usage to skill-based, specialized hiring. High-end roles in areas like artificial intelligence, cybersecurity, data science, and cloud computing continue to see demand, and companies are increasingly seeking H1B visas only for such niche positions.
For Indian professionals, however, the data reflects increased competition and limited opportunities under the H1B program. With fewer approvals and intense scrutiny, candidates now require higher qualifications and specialized skills to secure selection.
In the long term, analysts believe that India-US technology cooperation will remain strong, but the structure of workforce movement will continue to evolve. The sharp drop in H1B approvals signals a broader shift in global hiring trends, driven by regulation, technology, and changing business strategies.
