U.S. President Donald Trump's new rules on the H-1B visa are making it harder and more expensive for American companies to hire skilled workers from abroad. The fee has been raised to $100,000, and a new bill is being discussed to further restrict both H-1B and L-1 visas. For the Indian diaspora and India-focused businesses, these policy shifts represent a watershed moment—one that is reshaping where multinational corporations choose to base their operations and talent pipelines.
The H-1B Fee Increase and Its Immediate Impact
The H-1B visa, which allows U.S. employers to temporarily employ foreign workers in specialty occupations, has long been a gateway for Indian IT professionals, engineers, and other skilled workers to enter the American job market. The visa category has been central to the growth of the Indian tech diaspora in the United States, with Indians comprising a substantial majority of H-1B beneficiaries in recent years.
The new $100,000 fee represents a significant escalation in the cost of hiring foreign talent through this channel. For context, the H-1B visa process has historically involved various filing fees, but this new threshold marks a material increase in the financial burden on sponsoring employers. When multiplied across dozens or hundreds of visa applications per year—as large tech companies file—the cumulative cost becomes substantial. This fee structure incentivizes companies to reconsider their hiring models and explore alternatives to bringing workers to the United States.
For NRI job seekers and those aspiring to work in the U.S., the higher fee may also indirectly affect hiring patterns. Some employers may become more selective, prioritizing candidates with existing work authorization or green card holders. Others may shift recruitment focus away from the U.S. market entirely, redirecting hiring efforts to offshore centres.
Proposed Restrictions on H-1B and L-1 Visas
Beyond the fee increase, a new legislative proposal is being discussed that would further restrict both H-1B and L-1 visas. The L-1 visa, which allows intracompany transfers of managers, executives, and specialized knowledge workers, has been a common pathway for Indian professionals working at multinational firms to relocate to U.S. offices. Restrictions on L-1 visas would particularly affect employees of Indian IT services firms—such as Infosys, TCS, Wipro, and HCL—who typically use L-1 visas to deploy staff to client sites in the United States.
The combination of higher H-1B fees and tighter L-1 restrictions creates a dual squeeze: companies cannot easily hire new foreign workers on H-1B, and they cannot easily transfer existing employees to the U.S. on L-1. This policy environment is a key driver of the trend discussed below—the expansion of Global Capability Centres in India.
The Shift Toward Global Capability Centres in India
Because of these changes, many U.S. companies are moving more of their important work to India. India already has over 1,700 Global Capability Centres (GCCs)—also known as captive centres or in-house delivery centres—where multinational corporations handle tasks like artificial intelligence, cybersecurity, and product development. These are not outsourcing relationships with third-party vendors; rather, they are subsidiary operations owned and operated directly by the parent company.
GCCs represent a middle ground between maintaining all operations in the home country and outsourcing to external service providers. They allow companies to tap India's deep talent pool, lower labour costs, and established tech infrastructure while retaining direct control over quality, intellectual property, and strategic operations. For multinational firms, expanding a GCC in India becomes an increasingly attractive alternative to navigating the visa restrictions and fees imposed on bringing workers to the United States.
Major Companies Expanding Indian Operations
Big firms such as Amazon, Microsoft, and JPMorgan Chase—all major H-1B users—are expected to expand their Indian centres. These companies have already established significant presences in India; the policy shift is likely to accelerate their investment and hiring in these locations.
Amazon, for instance, has long operated substantial engineering and customer service operations in India. Microsoft has research labs and development centres across multiple Indian cities. JPMorgan Chase has expanded its technology and operations teams in India substantially in recent years. For these firms, increasing headcount in India becomes a direct substitute for H-1B visa sponsorships in the United States. Rather than bringing an engineer from Bangalore to Seattle on an H-1B visa, the company simply hires and retains that engineer in Bangalore, often at a lower salary cost and without visa complications.
This trend has implications for NRI professionals as well. Those who might have previously pursued H-1B sponsorship as a pathway to U.S. employment may find more opportunities—and potentially better compensation packages—by remaining in India and working for these expanded GCCs. Conversely, NRIs already in the United States on H-1B visas may face a more competitive environment, as companies prioritize hiring locally or in India rather than sponsoring additional visa applications.
Projected Growth of India's GCC Market
Experts say the expansion of GCCs could grow India's GCC market to $100 billion by 2030, with more than 2,200 centres operating in the country. This projection reflects confidence in India's ability to attract and retain multinational corporate operations. The growth is underpinned by several factors: India's large pool of English-speaking, technically trained professionals; competitive labour costs; established infrastructure in tech hubs like Bangalore, Hyderabad, and Pune; and government support for the IT and business services sectors.
For India's economy, the expansion of GCCs represents a significant opportunity. These centres generate high-value employment, attract foreign direct investment, and contribute to India's foreign exchange reserves through repatriation of profits and salaries. They also create spillover effects, supporting ancillary services, real estate, and consumer spending in the cities where they operate.
The HIRE Act and the Outsourcing Tax Risk
However, there may be challenges ahead. A proposed U.S. law called the HIRE Act could place a 25% tax on outsourced work, which may reduce India's cost advantage. This tax would apply to work performed outside the United States by foreign subsidiaries or contractors, effectively raising the cost of offshoring for American companies.
If enacted, such a tax would make the financial case for expanding GCCs in India less compelling. A 25% tax on the cost of operations in India would narrow the cost differential that currently makes India attractive relative to the United States. Some companies might reconsider their expansion plans, or they might seek to structure their operations differently to minimize the tax impact.
For NRI professionals and India-focused stakeholders, the HIRE Act represents an uncertainty. It could dampen the growth trajectory of GCCs, potentially limiting job creation in India and reducing the attractiveness of India-based roles for diaspora members considering a return to India. On the other hand, if the tax is enacted but is modest in its real-world impact, or if it is narrowly tailored, the fundamental shift toward India-based operations may continue despite the additional tax burden.
India's IT Industry as a Foundation
Still, India's strong IT industry, worth $283 billion and contributing about 8% of the country's GDP, is expected to benefit from the broader shift toward India-based operations. The IT sector has been a cornerstone of India's post-liberalization economic growth and a major source of foreign exchange. It has also been the primary vehicle for Indian professional emigration, creating the NRI communities in the United States, United Kingdom, Canada, and other developed nations.
The expansion of GCCs represents a maturation of this sector. Rather than exporting talent to foreign shores, India is increasingly becoming the destination for multinational corporations seeking to establish or expand their own operations. This shift could alter the traditional brain drain narrative, potentially creating incentives for diaspora members to return to India or for talented Indians to remain in India rather than seeking opportunities abroad.
The IT industry's contribution to GDP and employment is substantial, and further growth in GCC operations would amplify this impact. More jobs, higher salaries, and greater investment in infrastructure and training would follow from a $100 billion GCC market by 2030.
Strategic Implications for Companies and Workers
As companies look for ways to keep innovation in-house while navigating tighter visa restrictions, India will remain a top choice for running these global centres. The combination of policy pressure in the United States and structural advantages in India creates a compelling case for multinational corporations to invest in India-based operations.
For workers, the implications are nuanced. NRI professionals currently in the United States on H-1B visas may face a more challenging environment for visa renewals or sponsorships, and the pool of new H-1B opportunities may shrink. However, opportunities in India-based GCCs are likely to expand, potentially offering competitive salaries and career growth. For those considering a return to India or a first move to India, the growth of GCCs could provide more attractive employment options than were previously available.
For India as a nation, the shift represents a validation of its IT sector and a potential acceleration of economic growth. However, it also creates dependencies—if U.S. policy shifts again, or if other countries become more attractive for GCC operations, the benefits could be reversed.
Conclusion: A Reshaping of the Global Talent Landscape
In short: while U.S. visa rules get tougher, India's role as a hub for global business and technology is only getting stronger. The $100,000 H-1B fee, proposed restrictions on L-1 visas, and the potential HIRE Act tax on outsourced work are all pushing multinational corporations toward India-based operations. With over 1,700 GCCs already in place and projections of 2,200 by 2030, India is positioned to capture a significant share of the global knowledge work that might otherwise have been based in the United States. For the Indian diaspora, this shift offers both opportunities and challenges—new pathways for engagement with India, but also a changing landscape for those seeking to work in the United States. The coming years will reveal whether this trend accelerates or whether policy adjustments in the United States or elsewhere reshape the calculus once again.