H-1B Visa Crackdown May Push US Firms to Shift Operations to India: Report

Washington, Sep 30 – Days after US President Donald Trump signed a proclamation to significantly curtail the H-1B visa programme and amend its rules, a new report suggests the move will “hasten US firms’ shift of critical work to India.”

Analysts argue that the administration’s actions could accelerate the growth of Global Capability Centres (GCCs) that manage a wide range of operations, from finance to research and development.

Rohan Lobo, a partner and GCC industry leader at Deloitte India, noted that “several US firms are reassessing their workforce needs,” with plans already underway to relocate functions such as financial services and technology. The trend is particularly visible among companies tied to U.S. federal contracts.

According to the report, GCCs are “uniquely positioned for this moment” as they serve as an in-house engine for high-value tasks. Industry experts believe that if the new visa restrictions remain in place, US companies may increasingly transfer advanced work in AI, product development, cybersecurity, and analytics to their Indian centres, preferring to keep strategic roles internal rather than outsourcing.

On September 19, President Trump announced a proclamation imposing a $100,000 fee on each new H-1B application, saying the measure would act as an “incentive to hire American workers.”

The announcement initially caused confusion, as it appeared to impact current H-1B visa holders and their ability to return to the US. The White House later clarified that the fee would apply only to new applications, not renewals or existing visas.

Shortly after, the US Department of Homeland Security (DHS) proposed regulatory amendments to the H-1B system. The plan includes scrapping the current lottery-based selection and introducing a weighted system designed to favour higher-skilled workers.