Experts say that the Republican government led by Donald Trump in the US may impose strict rules for Indian software services companies, including higher salary requirements for local employees. If the Democrats remain in power, Kamala Harris’s government may reduce barriers to H-1B visas, which will benefit Indian IT firms as they will be able to deploy more talent to meet US demand. The Biden administration worked to modernize the H-1B system, increase transparency in the lottery system and prevent fraud.
Indian IT companies including Tata Consultancy Services (TCS), Infosys and Wipro are among the biggest recipients of H-1B visas.
Opinion of experts
Anupam Shukla, partner at Pioneer Legal, said historically the Indian IT sector has performed better under Democratic administrations, which have a positive attitude towards technology and innovation. “Harris’ administration may consider increasing the H-1B visa cap or developing new pathways for high-skilled immigrants,” Shukla said.
Nilesh Tribhuvan, managing partner, White & Brief – Advocates & Solicitors, said that stricter H-1B rules, harsher scrutiny and restrictions can be expected under the Trump administration. “This will force Indian IT companies to invest more in local hiring and onshore talent pools,” he said.
During Trump’s previous term, the Indian IT industry faced increased visa rejection rates, stringent eligibility criteria, increased salary requirements and longer processing times, which impacted their ability to complete projects efficiently.
In 2020, the Trump administration introduced an interim final rule to significantly raise the minimum wage for H-1B visa holders, which many saw as a barrier to hiring foreign workers. In addition to the wage hike, the Trump administration proposed a narrower definition of “specialty occupations” to limit H-1B eligibility. “If these policies return, companies that rely on H-1B visas could face increased recruitment costs and possibly talent shortages,” Shukla said.
