US firms accelerate shift to India amid Trump’s visa restrictions

**US Firms Accelerate Shift to India Amid Trump’s Visa Restrictions**

*By Mudit Dube | Sep 30, 2025*

US President Donald Trump’s recent hike in H-1B visa application fees is prompting American companies to ramp up the relocation of their operations to India, according to industry experts cited in a Reuters report. This trend is set to accelerate the growth of Global Capability Centers (GCCs) across the country, which manage a wide range of functions including finance, research, and development.

### GCC Growth in India

India, the world’s fourth-largest economy, is home to over 1,700 Global Capability Centers — accounting for more than half of the global total. The nation has evolved from being primarily a tech support destination to a hub of high-value innovation, encompassing fields such as drug discovery and luxury car design. This transformation is further propelled by the increasing adoption of artificial intelligence and the tightening of US visa regulations.

### Strategic Workforce Shifts

Rohan Lobo, Partner and GCC Industry Leader at Deloitte India, noted that US companies are reassessing their workforce strategies. “GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” he said. This strategic pivot is already evident in sectors like financial services and technology, especially among firms with exposure to US federal contracts.

### Policy Changes Impacting Visas

This month, the US government dramatically increased the fees for new H-1B visa applications to $100,000, up from the previous range of $2,000 to $5,000. This steep rise puts additional pressure on American companies that have traditionally relied on skilled foreign workers to fill critical talent gaps. Additionally, US senators recently reintroduced legislation aimed at tightening regulations on H-1B and L-1 worker visa programs.

### Transfer of High-End Work to India

Industry experts anticipate that US firms will increasingly relocate high-end work involving artificial intelligence, product development, cybersecurity, and analytics to their GCCs in India. Rather than outsourcing, companies prefer to keep these strategic functions in-house. The recent policy changes have intensified discussions about moving high-value tasks to GCCs—a trend many companies had already begun.

### Offshoring Trends and Urgency

Lalit Ahuja, Founder and CEO of ANSR—which assisted FedEx and Target in establishing their GCCs—highlighted a “sense of urgency” among companies to shift operations to India. Ramkumar Ramamoorthy, former MD at Cognizant India, added that this rush might lead to “extreme offshoring” in some cases.

An executive from a retail-focused GCC indicated that either more roles will move to India or corporations will consider near-shoring options to nearby countries such as Mexico or Colombia.

The rising costs and stricter visa regulations in the US are reshaping how American companies allocate their global workforce, with India emerging as a critical hub for innovation and high-value projects.
https://www.newsbytesapp.com/news/business/trump-s-h-1b-visa-fee-hike-pushes-us-firms-to-india/story

Leave a Reply

Your email address will not be published. Required fields are marked *