India’s technology sector is optimistic about a boost to the services sector though President Donald Trump’s return to the Oval Office has raised concerns whether the US’s immigration laws are up for an overhaul.“Previous anti-immigration efforts of the Republican regime, such as introducing policies that increased prevailing wages for H1B workers, were overturned after they met with legal backlash,” said Poorvi Chothani, founder and managing partner of LawQuest, an immigration law firm based in Florida. “We should not only brace ourselves to see more of this, but be prepared for changes to the Immigration and Nationality Act, which will be feasible now that the Republicans virtually control Congress. In the meantime, it is likely to become more expensive and difficult to employ foreign workers under the H-1B program or otherwise.”

The Trump 2.0 administration may relook at the annual allotment of H-1B work visas from the current quota of 85,000. H1B applications would attract tougher examination as denial rates for H-1B under Trump 1.0 administration were at an all-time high of 24%. The duration and eligibility for Optional Practical Training (OPT) for international students may also come under fresh scrutiny.

Though a tougher anti-immigration sentiment may be cause for concern, India’s IT companies have gradually reduced their dependency on H-1B approvals as they look towards expanding employee base onshore.

“While there have been concerns regarding Trump’s re-election with respect to tougher H-1B visas, its effect on Indian IT service companies may not be as significant as perceived,” said Shaji Nair, research analyst, Sharekhan by BNP Paribas.

India’s top seven IT services companies, including TCS, Wipro, Infosys, HCL, saw a 56% decline in their usage of the premier US work visa programme – H-1B – over the last eight years. H-1B visa petitions for initial employment in the US from these seven companies fell from 15,166 in fiscal 2015 to 6,732 in 2023.India-based global capability centres (GCCs) have also become central to the success of US majors, said Yugal Joshi, partner at research and advisory company, Everest Group. “All of these factors may negate the negativity,” he said.

Also, with the tech titan Elon Musk by his side, the Trump 2.0 administration may take a softer stance on high-skilled immigration, said Pareekh Jain, founder and CEO at IT consulting firm EIIRTrend. “Trump’s win will be overall positive for Indian IT sector,” said Jain.

Nasscom, India’s apex technology body said, the tech sector is the key lynchpin of the US-India bilateral engagement.

“US is the largest market for India’s $254 billion tech sector where its overall contribution is $80 billion to US GDP. Conversely, India is a prime destination for American businesses, with over 1,000 US companies that are driving innovation and leveraging India’s digital infrastructure to create competitive solutions,” it said with an optimistic outlook about the new administration.

IT rally

IT majors have rejoiced in the Republican victory as tech stocks led the rally on India’s benchmark stock indices on Wednesday. Infosys surged 3.59%, followed by HCL Technologies at 3.57% and Tata Consultancy Services at 3.55%.

India’s technology sector is optimistic about a boost to the services sector though President Donald Trump’s return to the Oval Office has raised concerns whether the US’s immigration laws are up for an overhaul.“Previous anti-immigration efforts of the Republican regime, such as introducing policies that increased prevailing wages for H1B workers, were overturned after they met with legal backlash,” said Poorvi Chothani, founder and managing partner of LawQuest, an immigration law firm based in Florida. “We should not only brace ourselves to see more of this, but be prepared for changes to the Immigration and Nationality Act, which will be feasible now that the Republicans virtually control Congress. In the meantime, it is likely to become more expensive and difficult to employ foreign workers under the H-1B program or otherwise.”

The Trump 2.0 administration may relook at the annual allotment of H-1B work visas from the current quota of 85,000. H1B applications would attract tougher examination as denial rates for H-1B under Trump 1.0 administration were at an all-time high of 24%. The duration and eligibility for Optional Practical Training (OPT) for international students may also come under fresh scrutiny.

Though a tougher anti-immigration sentiment may be cause for concern, India’s IT companies have gradually reduced their dependency on H-1B approvals as they look towards expanding employee base onshore.

“While there have been concerns regarding Trump’s re-election with respect to tougher H-1B visas, its effect on Indian IT service companies may not be as significant as perceived,” said Shaji Nair, research analyst, Sharekhan by BNP Paribas.

India’s top seven IT services companies, including TCS, Wipro, Infosys, HCL, saw a 56% decline in their usage of the premier US work visa programme – H-1B – over the last eight years. H-1B visa petitions for initial employment in the US from these seven companies fell from 15,166 in fiscal 2015 to 6,732 in 2023.India-based global capability centres (GCCs) have also become central to the success of US majors, said Yugal Joshi, partner at research and advisory company, Everest Group. “All of these factors may negate the negativity,” he said.

Also, with the tech titan Elon Musk by his side, the Trump 2.0 administration may take a softer stance on high-skilled immigration, said Pareekh Jain, founder and CEO at IT consulting firm EIIRTrend. “Trump’s win will be overall positive for Indian IT sector,” said Jain.

Nasscom, India’s apex technology body said, the tech sector is the key lynchpin of the US-India bilateral engagement.

“US is the largest market for India’s $254 billion tech sector where its overall contribution is $80 billion to US GDP. Conversely, India is a prime destination for American businesses, with over 1,000 US companies that are driving innovation and leveraging India’s digital infrastructure to create competitive solutions,” it said with an optimistic outlook about the new administration.

IT rally

IT majors have rejoiced in the Republican victory as tech stocks led the rally on India’s benchmark stock indices on Wednesday. Infosys surged 3.59%, followed by HCL Technologies at 3.57% and Tata Consultancy Services at 3.55%.