New Delhi: The H-1B visa approvals for Indian IT firms have dropped by more than half since 2015, a new study has found. According to an analysis of US data by the National Foundation for American Policy (NFAP) – a US-based non-partisan think-tank – India’s top seven IT firms had only 7,299 H-1B petitions for new employment approved in fiscal year 2024 as opposed to 14,792 approvals in FY15, The Economic Times reported.
The H-1B visa is a temporary nonimmigrant visa allotted through a lottery system that offers a route for graduates and skilled workers to work in the US in specialty occupations.
Nearly half of the approved H-1B petitions in FY24 (49.1%) were in professional, scientific and technical services, followed by educational services (11.9%), manufacturing (9.3%), health care and social assistance (6.5%).
Amazon, which remains the biggest sponsor of H-1B visas, saw 3,871 approvals in FY24, lower than 4,052 in the previous year. Similarly, Indian IT giants like Cognizant (2,837), Infosys (2,504), TCS (Tata Consultancy Services) (1,452) and others also saw a significant drop in H-1B visa approvals, the report stated.
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Several analysts have linked the decline in approvals to global recession and a shift in workforce needs. Ajay Sharma, founder of Abhinav Immigration Services, told Business Standard, “The only reason I can think of is that the global recession and AI are impacting the business models of all major players. They do not need to hire for redundant positions or for positions in divisions that are losing business due to the recession.”
According to the NFAP findings, denial rates could further increase under the Trump administration. During the previous government under Donald Trump, the president had imposed restrictive policies on H-1B and L-1 visas and a similar move could impact the IT services firms that rely heavily on these visas.
On the other hand, Elon Musk-owned electric vehicle company Tesla showed a rise in H-1B visa approvals. Tesla saw 742 approvals in FY24, more than double the 328 in the previous year, taking it to the 16th position among the top 25 employers, the NFAP stated.
At present, the US has an annual cap of 65,000 H-1B visas, with an additional 20,000 reserved for foreign nationals with a master’s degree or higher educational qualification from US universities.