The latest U.S. Citizenship and Immigration Services (USCIS) data analysed by the National Foundation for American Policy show that India’s seven largest IT-services companies secured only 4,573 initial (new) H-1B approvals in FY 2025—70 % fewer than in 2015 and 37 % below last year. The steep fall coincides with the Biden administration’s H-1B “modernisation” package that tightened specialty-occupation definitions, imposed degree-relevance tests and introduced a one-time US $100,000 filing fee for new petitions.
Indian firms are leaning far more heavily on extension petitions—Tata Consultancy Services alone obtained 5,293 continuing-employment approvals—while redirecting work to near-shore delivery centres in Mexico, Poland and Canada. Immigration lawyers warn that higher filing costs, mandatory social-media disclosure and longer adjudication times will add 15-20 % to on-site project budgets in 2026.
![U.S. H-1B approvals for Indian IT firms plunge to decade-low amid tougher rules]()
For global mobility teams the message is clear: (1) budget for higher petition costs and longer lead times, (2) expand L-1/L-2 and B-1 in lieu of H-1B alternatives, and (3) accelerate local hiring in the U.S. and friendly third countries. Indian assignees already in the U.S. should be prioritised for extensions before the new fee structure fully kicks in next April.
Indian tech exporters derive 50-60 % of their revenue from North America; a structurally smaller H-1B pipeline will therefore force companies to shift more work offshore or increase American hiring—moves that could raise wage bills and erode traditional cost arbitrage.
Indian firms are leaning far more heavily on extension petitions—Tata Consultancy Services alone obtained 5,293 continuing-employment approvals—while redirecting work to near-shore delivery centres in Mexico, Poland and Canada. Immigration lawyers warn that higher filing costs, mandatory social-media disclosure and longer adjudication times will add 15-20 % to on-site project budgets in 2026.
For global mobility teams the message is clear: (1) budget for higher petition costs and longer lead times, (2) expand L-1/L-2 and B-1 in lieu of H-1B alternatives, and (3) accelerate local hiring in the U.S. and friendly third countries. Indian assignees already in the U.S. should be prioritised for extensions before the new fee structure fully kicks in next April.
Indian tech exporters derive 50-60 % of their revenue from North America; a structurally smaller H-1B pipeline will therefore force companies to shift more work offshore or increase American hiring—moves that could raise wage bills and erode traditional cost arbitrage.
