H-1B Approvals for Indian IT Firms Drop to a Decade Low as the US Tightens Visa Rules

New H-1B approvals for leading Indian IT services companies have declined sharply in FY 2025, marking the lowest level in ten years. 

The downturn comes amid significant changes to US visa regulations, stricter assessments of job roles and increased costs for new petitions.

While continuing-employment approvals remain stable, the shift highlights an evolving immigration landscape that is reshaping how Indian IT firms plan onsite hiring and manage workforce needs in the United States.

Indian IT Firms See a Sharp Decline in New H-1B Approvals

Fresh H-1B approvals for the top seven Indian IT companies fell to 4,573 in FY 2025, a substantial reduction from levels seen a decade ago.

The decline signals a structural change in how US authorities assess first-time visa requests, particularly for occupations deemed sensitive or requiring closer qualification checks.

At the same time, large US technology firms now dominate initial approvals, indicating a shift in employer preference and the broader competition for specialised talent.

Continuing-Employment Petitions Hold Steady

While new petitions have dropped, the number of continuing-employment H-1B approvals remains comparatively stable. USCIS cleared more than 291,000 extension requests in FY 2025 with a relatively low denial rate.

For Indian IT service providers, this has resulted in a greater dependence on retaining existing H-1B staff already working in the US rather than bringing in new employees.

Some companies have seen marginal increases in rejection rates for renewals, though most remain close to the industry average.

How Key Indian IT Firms Fared (FY 2023–FY 2025)

Several Indian technology firms experienced mixed outcomes across continuing-employment approvals:

• TCS recorded over 5,000 extension approvals but saw its denial rate rise compared with the previous year.
• Infosys, Wipro and LTIMindtree continued to maintain relatively low rejection rates for renewals.
• Initial employment denials saw a noticeable rise across multiple firms, signalling stricter scrutiny for new entrants.

Policy Changes That Are Influencing Demand

A series of regulatory updates introduced in 2025 has reshaped how employers approach H-1B sponsorship:

Updated Specialty Occupation Rules

Revised definitions now require a closer alignment between job roles and academic qualifications, adding additional checks for first-time applicants.

Higher Costs for New Petitions

A one-time fee of $100,000 for all new H-1B petitions—announced in September 2025—has increased cost pressures, particularly for firms that historically relied on high-volume filings. Extensions are not subject to this fee.

Expanded Background Screening

New requirements asking applicants and dependents to provide access to social-media accounts for review have added procedural steps that may discourage potential applicants.

These changes collectively point towards tighter oversight and higher compliance expectations for employers.

Industry Response and Shifting Workforce Strategies

With rising costs and new regulatory hurdles, Indian IT companies are reassessing how they structure their US workforce. 

Trends include expanded local hiring, greater use of nearshore centres and a stronger emphasis on developing domestic talent pools in India. Industry observers believe this adjustment may continue as firms balance compliance requirements with operational needs in overseas markets.

Read More: Indian Professionals Turn to EB-1A and EB-2 NIW Visas as H-1B Visa Route Gets Tougher.

Conclusion

The decline in new H-1B approvals for Indian IT services companies reflects broader shifts in US immigration policy and employer behaviour. While renewals remain steady, stricter criteria for new applications, higher fees and additional screening processes are influencing hiring decisions and long-term talent planning.

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