Indian IT Firms Cut H-1B Visas to 7-Year Low for FY27
By Business Desk
Indian IT giants drastically reduce H-1B visa applications for US FY27 to a 7-year low, citing increased fees and lottery changes. Focus shifts to existing visa holders and local hiring.
Indian IT companies have significantly reduced fresh H-1B visa applications for US FY27, reaching a seven-year low in registrations. This substantial decline stems from increased fees and a revised lottery system.
Understanding the Application Downturn
The number of eligible registrations for fiscal year 2027 plummeted by 38.5 percent to 211,600, down from 343,981 recorded a year prior. This data, released by the United States Citizenship and Immigration Services (USCIS), highlights a strategic shift among firms.
- US FY27 Eligible Registrations: 211,600
- Previous Year’s Registrations: 343,981
- Percentage Decrease: 38.5 percent
Factors Driving Reduced Demand
Several key factors are contributing to this reduction in new H-1B applications. The Trump administration introduced soaring fees, making each new application a more costly endeavor for companies.
- Increased fees imposed by the Trump administration.
- Changes to the lottery system now prioritize employees with higher salary levels.
- Rising adoption of artificial intelligence solutions reduces the need for certain roles.
- A weighted selection process favors higher-skilled workers, creating distinct wage tiers.
Strategic Shifts for Indian IT Firms
In response to these evolving conditions, major IT firms like Tata Consultancy Services, Infosys, and Cognizant are adjusting their visa strategies. They are prioritizing extensions and transfer petitions for their existing H-1B visa holders.
This approach allows companies to circumvent the high costs associated with filing entirely new applications. Indian IT companies have also spent a decade working to reduce their reliance on H-1B visas by increasingly hiring local STEM graduates within the US.
Current Landscape and Future Outlook
Data further confirms this trend, showing 8,160 total applications in 2025 by 18 Indian-listed IT services firms and Cognizant, a sharp drop from 36,453 in 2024. The current economic climate encourages retaining and redeploying existing H-1B talent.
Experts note that a recent court decision to set aside a significant fee could potentially encourage more H-1B petitions for overseas candidates in future lotteries. Additionally, many FY26 H-1B petitions were approved after delays, creating a pool of already deployable workers.