H-1B Visa Reforms in Focus: Can It Impact Big IT Firms TCS, Infosys & Others?

President-elect Donald Trump has appointed Indian-American venture capitalist Sriram Krishnan as the senior policy advisor for artificial intelligence (AI) at the White House Office of Science and Technology Policy. Krishnan’s role highlights the growing emphasis on AI and technological advancements in shaping future policies.

His appointment comes at a time when the US administration is considering major reforms to the H-1B visa program, particularly addressing country-specific caps and per-annum quotas that impact skilled foreign workers, including Indian professionals.

H-1B Visa Program: An Overview

The H-1B visa program allows US companies to employ foreign professionals in specialised fields that require advanced education and training. Currently, the program imposes an annual cap of:

• 65,000 visas for workers with at least a bachelor’s degree.
• 20,000 additional visas for those with a master’s degree or higher from US institutions.

Despite its focus on skilled professionals, the program faces criticism due to limitations on the number of visas issued annually, causing delays for applicants and employers.

Country Caps and Indian Professionals

Unlike green cards, which limit applicants from any single country to 7% of the total visas, the H-1B visa program does not impose country-specific quotas. However, Indian applicants dominate the program, receiving approximately 72% of H-1B visas issued in fiscal year 2023.

High demand for these visas often leads to years-long delays for Indian professionals, with some waiting periods stretching to nearly 100 years. This has sparked calls for reforms to address fairness and efficiency in the system.

Advocacy for Merit-Based Immigration

Krishnan, along with other prominent Indian Americans, has voiced support for merit-based immigration reforms. These proposed changes aim to prioritise highly skilled professionals and streamline the green card process to attract and retain top global talent.

Meanwhile, entrepreneur Vivek Ramaswamy has called for substantial reforms to the H-1B visa program, criticizing American work culture and advocating for a shift toward performance-based hiring practices.

Impact on Indian IT Companies

As per the news report, Indian IT giants such as Tata Consultancy Services (TCS), Infosys, and Wipro rely heavily on H-1B visas to meet workforce requirements in the US. Potential changes to visa policies could lead to:

• Operational disruptions for these companies.
• Higher costs associated with scaling up local hiring.
• Shifts in strategies to align with new regulations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.