The Indian IT sector, a $300 billion powerhouse driving global innovation, is ramping up its US footprint with over $1 billion invested in local hiring and upskilling, according to industry body Nasscom. Announced on September 22, 2025, this proactive strategy comes amid President Donald Trump’s proposed $100,000 one-time fee on new H-1B visas, set for FY2026, which targets skilled worker mobility but spares renewals. For tech professionals, investors, and policymakers searching Indian IT US hiring 2025, H-1B fee impact Nasscom, or IT upskilling investments, this move signals resilience: H-1B visas for top Indian firms have dropped 31% since 2015, now comprising under 1% of their US employee base. As firms like TCS and Infosys pivot to domestic talent, the sector eyes sustained growth despite geopolitical headwinds.
This isn’t reactive panic—it’s a decade-long evolution blending localization with global delivery. Let’s break down the investments, visa trends, and what it means for the $283 billion industry.
The $1 Billion Bet: Upskilling and Hiring Surge
Nasscom’s statement highlights a “sharp rise” in US local hires, fueled by $1 billion+ in training programs for AI, cloud, and cybersecurity. This counters the fee’s potential 5% margin hit for smaller firms, while big players like TCS (5,505 H-1B approvals in FY25) maintain minimal exposure.
Key drivers:
- Talent Pipeline Build: Programs target American workers, filling skill gaps without visa hurdles—local hires now dominate US operations.
- Business Continuity: The White House’s September 20 clarification (one-time fee for new petitions only) eases immediate fears, but firms are accelerating diversification.
- Economic Alignment: With 57% of Indian IT revenue from the US, localization sustains client ties amid protectionism.
Nasscom VP Debjani Ghosh emphasized: “Skilled talent mobility bridges gaps, but local investments ensure competitiveness.”
| Investment Focus | Allocation (Est.) | Impact |
|---|---|---|
| Upskilling Programs | $600M+ | AI/Cloud Training for 100K+ Locals |
| Local Recruitment | $400M+ | Sharp Rise in US Hires (Exact # Undisclosed) |
| Infrastructure | $100M+ | Expanded US Delivery Centers |
H-1B Trends: From 14,792 to 10,162 Visas
H-1B issuances to leading Indian firms plummeted from 14,792 in 2015 to 10,162 in 2024—a 31% drop—reflecting a deliberate shift. For the top 10 (TCS, Infosys, Wipro, etc.), H-1B workers are “less than 1% of their entire employee base,” per Nasscom.
- Pre-Fee Adaptation: Firms like Accenture and Capgemini cut filings 44% from FY21-FY25, prioritizing nearshoring to Canada/India.
- Fee’s Scope: Applies only to fresh petitions (effective Jan 2026), exempting renewals—marginal for established ops but challenging for startups.
- Global Pivot: Nearshoring to Mexico/Latin America and automation via GenAI offset visa curbs.
Analysts like Saumil Gandhi of HDFC Securities forecast “only a marginal impact,” with FY26 growth at 6-8% intact.
| Year | H-1B Visas Issued | % Change | Top Sponsor (TCS) |
|---|---|---|---|
| 2015 | 14,792 | – | 8,000+ |
| 2024 | 10,162 | -31% | 5,505 (FY25) |
| FY26 Projection | ~9,500 | -6% | Stable |
Broader Implications: Resilience Amid US Policy Shifts
This $1B infusion is a masterstroke for sustainability:
- Client Confidence: US firms like Apple and Cisco benefit from seamless service, with Indian IT’s 7.3% GDP contribution secure.
- Job Creation: Boosts US employment (thousands of roles) while sustaining 5 million Indian jobs.
- Sector Outlook: Nasscom’s Strategic Review 2025 projects $300B revenue by FY26, up 6%, with AI driving 25% growth.
- Global Tensions: Echoes the HIRE Act’s proposed 25% outsourcing tax, prompting further diversification.
Debjani Ghosh added: “Predictable frameworks fuel innovation—local investments complement mobility.”
Challenges: Navigating Fees and Beyond
While marginal, the fee pressures smaller players; antitrust scrutiny on AI oligopolies looms. Firms counter with green-card pushes and hybrid models.
Conclusion: A Localized Future for Indian IT in America
Indian IT’s $1 billion US investment isn’t defense—it’s offense, fortifying local talent to weather H-1B storms and fuel $300B ambitions. As visas fade to footnotes, upskilling rises as the real visa to growth. For those eyeing IT sector outlook 2025, this pivot promises stability amid flux. Will it blunt policy punches, or spark bolder plays? Q3 earnings will illuminate. Business Standard
