India tech sees silver lining in Trump's H-IB visa overhaul

As door closes on American dream for some, local firms may reap the benefits

- Rohini Mohan

Employees of Indian IT services provider LTIMindtree working in Bengaluru, India, on Sept 24. The US accounts for 50 per cent of India's software services exports, and the top five Indian IT firms derive roughly 55 per cent of their revenue from there. PHOTO: REUTERS

(REUTERS)

The Trump administration's push to steeply hike fees for skilled worker visas to boost hiring of American locals could end up accelerating offshoring of technological services to India, where the majority of foreign tech workers in the US hail from.

US President Donald Trump's latest executive order requires a onetime payment of US$100,000 (S$129,000) for all new H-1B visa applications. He is also mulling over ending the existing visa lottery, to replace it with a weighted system that favours higher-paid foreigners and keeps out younger, lower-tier professionals.

The H-1B is a non-immigrant visa for foreign workers in speciality occupations, sponsored by employers for those who hold bachelor's or higher degrees. Nearly two-thirds of H-1B visas in 2024 went to skilled people in computer and management-consulting services, engineering, and scientific research, according to a recent US government report.

The dramatic increase in visa fees, from the previous US$2,000 to US$5,000 range, is meant to make it prohibitively expensive for employers to sponsor skilled foreign workers entering the US on the H-1B visa, amid a broader clampdown on immigration.

It will shake up the Indian IT sector, which is strongly entwined with the US tech industry, providing outsourced services, collaborations and a steady flow of talent at all levels. The US accounts for 50 per cent of India's software services exports, and the top five Indian IT firms derive roughly 55 per cent of their revenue from there.