Executive Summary: Exclusively for US India Chamber readers

The U.S. economy has become structurally dependent on foreign-born talent, particularly in STEM and tech sectors. In 2024, nearly 20% of the American workforce was foreign-born. Indian professionals are at the heart of this system: roughly 75% of all approved H-1B visas in FY2023 were issued to individuals from India, and many of the largest H-1B employers ae Indian-owned firms.

However, as of September 2025, a sweeping presidential proclamation has introduced significant new costs and restrictions for H-1B visa entries, including a mandatory $100,000 payment per worker, tighter oversight of B-visa travel, and a pivot toward high-wage, high-skill prioritization. In the short term, Indian employers and professionals should anticipate increased mobility costs, stricter travel enforcement, and timing delays. In the long term, the effects could be more profound, altering not just costs but strategic decisions around where work is located and which roles are worth relocating to the U.S.

1) The U.S. Labor Market and India’s Stake

The U.S. relies heavily on global labor, especially in STEM. Foreign-born professionals made up 19% of the STEM workforce in 2021, and the demand for H-1B talent remains unrelenting; FY2026 caps have already been hit. For India, this presents both an opportunity and a risk. The U.S. needs Indian skills, but frictions in policy can reshape business costs and timing.

2) India’s Outsized Role

India is far ahead of any other nation in terms of H-1B workers and top visa-sponsoring firms. Moreover, Indian students now represent the largest international student cohort in the U.S., having overtaken China. This educational pipeline feeds directly into the tech and innovation ecosystem. Additionally, immigrants, many of them Indian, are disproportionately represented in AI startups and high-impact innovation roles.

3) What Changed on Sept 19, 2025

The proclamation blocks H-1B entries unless accompanied by a $100,000 payment per worker (valid for 12 months). DHS is instructed to deny petitions that lack payment, and State is ordered to prevent misuse of B visas. Agencies are also required to develop new wage rules favoring high-paid roles. This marks a fundamental shift in how employers must plan international hiring.

4) Immediate Effects for Indian Stakeholders

Costs will increase dramatically, making U.S. entry a strategic decision. Employers may prioritize U.S.-based hires (e.g., OPT graduates) over new visa applicants abroad. Smaller firms could delay or forego U.S. hiring altogether. Indian students and professionals should be aware that the path from graduation to H-1B is now steeper and more selective.

5) Long-Term Shifts

If wage-based prioritization becomes policy, it will favor highly specialized roles. This would reward firms moving into premium segments like chip design, AI, and advanced engineering. Simultaneously, some entry-level or mid-tier work may shift offshore to India-based global capability centers or nearshore locations like Canada or Mexico.

6) Strategic Guidance for Indian Companies and Professionals

● Budget strategically: Reserve the $100K payment for indispensable roles.
● Sequence hires: Favor U.S.-based graduates for conversion to H-1B.
● Explore alternatives: Consider O-1, L-1, or cap-exempt partnerships.
● Strengthen home base: Use India centers to build core teams and rotate only critical staff.
● Professionals should focus on specialization and build demonstrable portfolios.

7) What to Watch Next

Key developments to monitor include how the $100,000 rule is enforced, how agencies define “national interest” exceptions, and timelines for new wage and admission rules. BLS and CBO data will also signal whether labor shortages arise due to these changes.

8) The Big Picture

India’s position in the U.S. talent pipeline remains unrivaled, and overall demand shows no sign of abating. However, cost and compliance burdens will rise. Forward-thinking businesses and professionals should treat these shifts not as barriers, but as gateways requiring new strategies. By focusing on high-value roles, investing in domestic capability centers, and aligning with the U.S.’s evolving high-skill immigration focus, Indian stakeholders can remain at the forefront of the U.S. business landscape.

Source: https://www.usindiachamberdfw.org/h-1b-update-u-s-business-what-indian-companies-and-professionals-need-to-know/