How Changes to US Work Visas Are Hurting Indian Tech Companies

 

How Changes to US Work Visas Are Hurting Indian Tech Companies

Indian tech companies are in trouble. New rules about American work visas have sent their share prices tumbling for two days running. Big names like Infosys, TCS, Wipro and HCLTech have all taken a hit. Investors are worried because these firms rely massively on getting their staff into the States.


The H-1B visa has been a lifeline for Indian engineers and software developers wanting to work in America. Up until now, it's been a lottery—you apply and hope for the best. But the new rules change everything. Now they'll favour highly skilled workers on big salaries. That means junior staff—who make up most of the Indian workforce sent abroad—will struggle to get in.

This is going to cost Indian firms serious money. If they can't send their own people over, they'll have to hire Americans instead, which is far more expensive. Experts reckon this will eat into profits and chip away at the edge Indian outsourcing companies have enjoyed for years.

The stock market's already taken fright. Shares in Infosys and TCS have dropped, and smaller firms like Coforge are feeling it too. The Nifty IT index, which tracks tech stocks, is looking shaky. Investors clearly think profits are going to suffer once these rules kick in properly in 2026.

The American government says it's all about protecting local jobs and stopping people gaming the system. That might help American workers, but it's bad news for Indian companies that built their whole business model around affordable staffing.

The bottom line? These visa changes show how tricky it is to look after your own workers without damaging international business. Indian tech firms are facing higher costs and a lot of uncertainty. They'll need to move fast—either by hiring locally in America or finding new ways to work that don't depend so much on visas.

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