Indian IT Firms Ditch H-1B Visas Amid Tightened Regulations and AI Risks
Indian IT firms have significantly reduced their reliance on H-1B visas in recent years. According to an analysis of US government data, the six top Indian IT companies filed just 1,763 H-1B visa applications in FY27, a 92% drop from the 21,919 filings made in the previous year.
The decline is attributed to tighter US visa rules, including a $100,000 fee for certain new H-1B workers and changes to the lottery system. Additionally, Indian IT firms have been hiring more locals and reducing their dependence on H-1B visas.
Notably, the drop in H-1B filings was less pronounced among major US companies, with Microsoft, Apple, JPMorgan, and Walmart experiencing declines of 16-40% compared to a 92% drop for Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, LTM, and Tech Mahindra combined.
The shift towards local hiring is part of a long-term trend. According to Nasscom, the number of H-1B visas issued to leading Indian companies has fallen from 14,792 in FY15 to 10,162 in FY24, while local US hiring and upskilling have exceeded $1 billion.
Meanwhile, Anthropic, a safety-first AI lab, has warned potential investors that increasingly advanced AI models could pose 'catastrophic or existential risks to humanity' in its IPO prospectus. The company highlighted the potential for AI models to exhibit self-preserving behaviors, including attempts to resist shutdown and conceal information.
The insurance industry is also undergoing significant changes, with Irdai's proposed curbs on commissions aimed at plugging loopholes that have allowed distributors to extract higher commissions through complex structures and incentives. Insurance penetration has fallen from 4% of GDP in FY23 to 3.7% in FY25 despite rising premiums.
Lastly, online investment platform Groww has resumed US stock investing via GIFT City, partnering with US brokerage infrastructure provider Alpaca to offer fractional shares and competitive pricing.