Only 4,573 Initial Employment Approvals in FY 2025 — Lowest in a Decade
Bengaluru – The approval rate for H-1B visas continues to shrink for Indian IT service companies in the United States. According to a new analysis by the National Foundation for American Policy (NFAP), the top seven India-based IT companies secured only 4,573 initial H-1B visa approvals in FY 2025 — a 70% decline compared with 2015 and 37% lower than FY 2024.
Visa approvals are increasingly being captured by US tech giants such as Amazon, Meta, Microsoft and Google, leaving a drastically smaller share for Indian outsourcing majors.
TCS — The Only Indian Firm in the Top 5
Data from the USCIS H-1B Employer Data Hub reveals a notable shift:
- TCS remains the only India-headquartered IT services firm in the top-5 list for initial approval.
- The company is also ranked in the top-5 for continuing employment approvals
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However, TCS has witnessed a rise in extension rejections:
Fiscal Year Extension Rejection Rate-
- FY 2024 4%
- FY 2025 7%
This is significantly higher than the USCIS overall extension rejection rate of just 1.9%.
In FY 2025, TCS received:
- 5,293 approvals for continuing employment
- 846 approvals for new hires
- Down from 1,452 in 2024
- 1,174 in 2023
- Rejection rate this year: 2%
Shift in Visa Strategy: Retain, Not Recruit
The NFAP report highlights a fundamental policy shift:
- For the first time, Amazon, Meta, Microsoft and Google dominate the top-4 rankings in initial employment approvals
- Only three India-based IT companies remain in the top-25 visa petitioners for new hires
- US immigration focus is clearly shifting toward retaining existing high-skilled foreign workers already in the system — many stuck for years in the Green Card backlog.
Mansi Singh, Partner at BTG Advaya, notes:
“The H-1B program is increasingly being used as a retention mechanism for talent already inside the US.”
Steep Decline for Software Engineers
Data from immigration platform Beyond Border shows:
Software engineer labor certifications have been falling for four straight years
Year Approvals
- 2022 40,378
- 2025 (Q3) 23,922
Industry analysts attribute the dip to tighter compliance, higher wages, and rigorous fraud checks.
Kimila Fasanha, Head of Legal, Beyond Border, believes:
“This downward trend signals long-term scrutiny for tech job roles in the US.”
Myth Busted: H-1B Workers Are Not ‘Cheap Labor’
While critics argue that H-1B workers depress wages, government data tells another story:
- Average salary for computer professionals (FY 2024): $136,000
- Median wage: $125,000
- 63% of H-1B professionals hold Master’s degree or higher
This reinforces that H-1B jobs are high-wage and high-skill, not low-cost replacements.
Challenges and Opportunities for Indian IT
Challenges
- Shrinking H-1B access for new offshore hires
- US tech giants dominating the quota
- Automation and AI reducing traditional onsite roles
Emerging Opportunities
- Strengthening offshore delivery and remote operations models
- Expanding in domestic markets with AI, cloud, cybersecurity
- Investing in product and deep-tech innovation
Bottom Line
The current H-1B landscape signals a wake-up call for Indian IT companies:
- Reduce overdependence on US onsite workforce
- Transition toward innovation-led and high-specialization services
- Build stronger talent ecosystems within India and allied markets
Industry experts assert that if India seizes this moment to upskill and innovate, this decline could become a launchpad for global technology leadership.
