Donald Trump returns: What it means for H-1B visa holders, Indian techies

Donald Trump has officially taken office as the President of the United States once again, a development that has raised apprehensions among H-1B visa holders and Dreamers. Many fear a return to stricter regulations on foreign workers, a hallmark of Trump’s previous administration.

 

During his earlier term, Trump implemented policies that prioritised American workers over foreign talent.

 

The H-1B visa is a non-immigrant visa enabling US companies to employ foreign workers in specialised fields requiring advanced technical or theoretical expertise. It has been a critical pathway for Indian professionals in industries such as IT, artificial intelligence, and cybersecurity.

 

Data from the US Citizenship and Immigration Services (USCIS) shows that between April and September 2024, Indian-origin companies accounted for 24,766 out of 130,000 H-1B visas issued. Leading Indian tech firms such as Infosys and Tata Consultancy Services (TCS) remain major contributors to this figure.

 

However, there has been a shift in recent years. Indian IT companies operating in the US have reduced their reliance on H-1B visas by hiring more local talent. For instance, HCLTech reported that 80% of its US workforce comprises locals.

 

“Our dependence on the H-1B is one of the lowest in the industry. Over the last four years, we’ve become locally self-sufficient,” said Ramachandran Sundararajan, Chief People Officer at HCLTech on January 13, 2025.

 

Similarly, Wipro, India’s fourth-largest IT services company, has moved towards hiring a predominantly local workforce. “We have a good inventory of H-1B visas, but we’ve been hiring more locals in the US. This ensures we can adjust to any changes in the H-1B visa regime,” said Saurabh Govil, Chief Human Resources Officer at Wipro on Friday.

 

Declining approvals

 

Recent USCIS data indicates a drop in H-1B visa approvals during the fiscal year 2024. Amazon, the largest sponsor of H-1B visas, saw approvals fall from over 11,000 in 2023 to just 7,000 in 2024. Similarly, Infosys and TCS reported declines of 1,400 and 1,600 approvals, respectively.

 

Ajay Sharma, founder of Abhinav Immigration Services, attributed the drop to economic changes. “The global recession and AI-driven shifts are affecting the demand for traditional roles. Companies are focusing on evolving business models instead,” he said.

 

Piyush Gupta, vice president at CanAm Enterprises, an EB-5 investment firm, pointed to a decline in sponsorships for foreign students. “The unpredictability of the H-1B lottery system, coupled with stricter regulatory scrutiny, has deterred employers from offering internships or long-term roles to foreign students,” he explained.

 

Challenges ahead for Indian applicants

 

Adding to the challenges, Bernie Sanders, a prominent American senator, last week proposed amendments to the H-1B programme. His legislation seeks to double application fees and raise minimum wage requirements for foreign workers. Sanders argued that such measures would prevent corporations from replacing American workers with lower-paid H-1B employees.

 

“The programme should not be used to undercut the wages of high-skilled American workers,” Sanders said. He stressed that the proposed amendments would ensure corporations prioritise local talent and treat foreign workers fairly.

 

“Why would a corporation hire an American computer systems engineer at a salary of $110,000 a year when it is $65,000 cheaper to hire an H-1B worker for that same position? If you want to know why multi-billionaire owners of high-tech companies love the H-1B program so much, that is why. They are using this programme to substantially undercut the wages of American workers,” he said.

 

The increased costs and stricter compliance requirements could make it harder for Indian tech professionals to obtain the coveted visa. Regulatory changes have already introduced uncertainty, and companies may become more cautious in their approach.

 

Musk’s advocacy offers hope

 

Despite these hurdles, Elon Musk, CEO of Tesla and SpaceX and a staunch Trump supporter, has been a vocal advocate for the H-1B programme. Musk, who once held an H-1B visa himself, has called for reforms to ensure the system benefits the US economy while continuing to attract top-tier talent.

 

“There is a permanent shortage of excellent engineering talent,” Musk said in December 2024. He proposed raising the minimum salary for H-1B holders and introducing annual fees, arguing that such measures would balance domestic hiring with the need for global expertise.

 

With Trump back in the White House and key voices like Musk pushing for balanced reforms, the future of Indian tech talent in the US remains uncertain but not devoid of opportunities.