A significant policy shift in the United States' work visa program is ringing alarm bells across India's technology sector. The industry's leading trade body, Nasscom, has raised serious concerns about the potential fallout for Indian IT companies operating in America.
From Lottery to Wages: The Core Change
The fundamental reform involves moving away from the traditional random lottery system for allocating H-1B visas. The new model, championed by the Trump administration, will prioritize applications based on the salary offered to the prospective employee. The higher the wage, the greater the chance of selection. This update, reported on December 25, 2025, marks a pivotal change in how global tech talent is recruited for the US market.
Nasscom's Grave Concerns for Indian IT
Nasscom has flagged that this wage-centric selection process could have deep and lasting consequences. The body argues that it will directly affect how Indian IT firms plan their workforce, manage costs, and build talent pipelines for the long term. A primary worry is the restricted access to entry-level positions, which are often filled at lower wage brackets and are a critical entry point for fresh talent and early-career professionals from India.
The industry group fears a major reshuffling of global tech hiring practices. Companies may be forced to alter their operational and financial models in the US, potentially impacting project costs and competitiveness. The change threatens to disrupt the established talent flow that has been a cornerstone of the US-India tech partnership for decades.
Broader Implications and Future Outlook
This policy shift extends beyond immediate hiring challenges. It could force Indian IT services companies to accelerate local hiring in the US, invest more in automation, and reconfigure their service delivery models. The move is seen as part of a broader "America First" strategy to prioritize higher-paid jobs for American workers and attract only specialized, high-wage foreign talent.
While the stated goal is to protect US workers and attract the "best and brightest," critics, including Nasscom, warn it may inadvertently stifle innovation by cutting off a reliable source of skilled, cost-effective engineering talent that supports a wide range of American businesses, not just the tech giants. The coming months will be crucial as companies adapt to this new reality in the U.S. work-visa system.
