President Trump praises H-1B talent, reinforces India's tech role

President Donald Trump's remarks recognising the importance of H-1B talent have renewed optimism among India's tech sector, though experts say the real impact depends on visa fee reforms

Even as US President Donald Trump acknowledged that the country needs talent from outside, including those coming on H-1B visa, industry experts and senior executives are cautiously optimistic.

 

They said that while it is too early to react to Trump’s comments, the focus will be to see how the new visa fee and the changes in rules pan out.

 

“Indian talent has been recognised globally for hard work and innovation. The US has been one of the major destinations since the 1970s and I am hopeful that the benefits of employing global talent will be recognised,” said Ganesh Natarajan, chairman 5F World and GTT Data. He was the former chief executive officer (CEO) of Zensar.

 

According to data from Xpheno, a specialist staffing company, the biggest beneficiaries of H-1B visas have been US companies. A data on 100 H-1B sponsoring employers shows how American firms have been the biggest beneficiaries of the skilled migrant programme.

 

Ten out of the top 20 firms, by H-1B approvals received, are American-headquartered businesses.

 

Overall 58 per cent of the H-1B approvals issued over 15 years, adding up to nearly a million foreign workers, have gone to American firms, including BigTech.

 

“The dependency on migrant knowledge workers is well known in local business circles in the US, and the statement from Trump only endorses it further. While it's not clear what would officially ensue after the latest statement from the US president, it's definitely the quintessential light down the tunnel for local and international businesses in the US. The other significant beneficiaries of the H-1B programme, including India, UK, Ireland and France, will have reason to relax if the official stance of the government shifts. While the statement is welcome as a view, it will gain weight if the H-1B fee hike is officially reconsidered and revised, if not reversed,” said Kamal Karanth, cofounder of Xpheno.

 

The uncertainty in the US over employee mobility has forced several US firms to set up their global capability centres (GCCs) or ramp-up existing ones. According to UnearthInsights, GCCs will be the largest hirers. GCCs will see up to 150,000 net additions in FY26.

 

Some comments from IT leaders have also stated that the scrapping of H-1B visas would not impact their business model. Aiman Ezzat, CEO, Capgemini, on his recent visit to India, stated that the number of visas applied under this programme has been going down.

 

“H-1B visa is part of the flexibility of the model. It allows us in terms of sourcing pools,” he said.

 

“From a market standpoint, it is premature to react to these statements — unless there is a tangible reduction in visa fees or a policy change. The fundamentals of global talent mobility are not going to shift dramatically,” said Prashant Yadav, partner & technology lead at Amrop India.

 

Yadav is of the opinion that the recent remarks by Trump are unlikely to create any major disruption in the long run. “Simply restricting visas cannot bridge the talent gap overnight — the shortage of technically skilled professionals in the US will continue for some time. In fact, with high visa fees and evolving immigration policies, companies are likely to increase offshoring to optimise costs and maintain delivery capabilities,” he added.