Archive · 23 Dec 2025
India's IT Sector Faces Visa Challenges Amid AI Growth
India's big IT industry, worth USD 280 billion, is facing some challenges.
The US is making it harder and more expensive for Indian IT workers to get visas, which could cost companies a lot of money.
This might push more work to be done in India or other countries.
But at the same time, big companies like Microsoft and Google are investing billions in India to build data centres and AI infrastructure.
The IT companies are also focusing more on AI and hiring more people locally in the US to reduce risks.
So, while there are some problems, the industry is also growing and adapting to new technologies.
India's USD 280-billion IT industry faces tighter US visa rules and global trade uncertainty.
Proposed USD 100,000 H-1B visa fee and 25% outsourcing tax could add significant costs.
Companies are expanding AI investments and global capability centres (GCCs) in India.
Microsoft and Google announced multibillion-dollar commitments to data centres and AI infrastructure in India.
TCS plans to lay off 2% of its global workforce, while Infosys approves a record share buyback.
- Who
- Indian IT industry, US regulators, global tech companies
- What
- Visa policy changes and AI-driven growth in the IT sector
- When
- 2025-2026
- Where
- India, US, and other global hubs
- Why
- Increasing demand for AI and global capability centres, regulatory changes in the US
Pro-India IT Industry
US Regulatory Measures
Visa Policy Impact
Pro-India IT Industry
Indian IT companies have reduced risk by increasing local hiring in the US and strengthening India-based delivery.
US Regulatory Measures
Proposed USD 100,000 H-1B visa fee and 25% outsourcing tax could add significant costs and disrupt operations.
Market Expansion
Pro-India IT Industry
Expanding GCCs in India to manage regulatory exposure and protect margins.
US Regulatory Measures
US visa policies may accelerate the shift of work to non-US hubs and offshore delivery models.
- IT Industry Revenue
- USD 280 billion
- Proposed H-1B Visa Fee
- USD 100,000
- Proposed Outsourcing Tax
- 25%
- Microsoft's Investment in India
- USD 17.5 billion
- GCC Segment Projection by 2030
- USD 105 billion, 2.8 million jobs
- TCS Layoffs
- 2% of global workforce (about 12,200 employees)
- Infosys Share Buyback
- Rs 18,000 crore
Sources
Data centres expand beyond legacy areas
India’s IT hiring rises 16% in 2025: Report
India IT braces for visa headwinds, trade risk as AI and GCC expansion accelerate
India’s IT job demand touches 1.8 million in 2025 driven by GCCs, product-led firms