In a dramatic shift that signals challenging times for India's technology sector, the top seven Indian IT companies have witnessed a staggering 70% decline in H-1B visa approvals for initial employment since 2015. According to fresh data from the National Foundation for American Policy (NFAP), these firms received only 4,573 H-1B petitions approved for initial employment in FY 2025 - representing not only the massive drop from 2015 levels but also a 37% decrease compared to 2024 figures.
The Changing Landscape of H-1B Approvals
The analysis, drawing from the USCIS H-1B Employer Data Hub, reveals that Tata Consultancy Services (TCS) stands as the only Indian IT services company among the top five employers securing approvals for new H-1B workers in the United States. This marks a significant transformation in the H-1B ecosystem, where Indian IT giants once dominated the rankings.
TCS also maintains its position as the sole Indian IT company in the top five for continuing-employment approvals, though the company faced a notable increase in rejection rates for extensions. The rejection rate climbed to 7% in FY2025, up from 4% in 2024, and significantly higher than the overall USCIS recorded rejection rate of 1.9% for continuing-employment petitions.
TCS Performance Amidst Sector-Wide Challenges
India's largest IT services company secured 5,293 approvals for continued employment this year. However, for initial employment, TCS received only 846 approvals - a substantial drop from 1,452 in 2024 and 1,174 in 2023. The company maintained a relatively low 2% rejection rate for initial employment petitions this year.
The NFAP policy brief highlights a major redistribution in the H-1B landscape, with technology giants Amazon, Meta, Microsoft, and Google occupying the top four positions for new H-1B approvals for the first time. This development underscores the shifting priorities in the US technology employment market.
Only three India-based companies appear in the list of the top 25 employers for initial H-1B petitions, indicating the reduced footprint of Indian IT firms in the US talent acquisition space.
Industry-Wide Trends and Expert Analysis
While petitions for continuing employment constitute the bulk of H-1B filings, and rejection rates remain low for most major IT services firms, the data reveals concerning patterns. Infosys, Wipro, and LTIMindtree reported rejection rates between 1% and 2% for continuing-employment petitions, but initial-employment denials rose sharply in FY 2025.
Among larger employers, TCS posted one of the lowest rejection rates at 2%, while HCL America recorded 6%, LTIMindtree 5%, and Capgemini 4%.
Mansi Singh, Partner at law firm BTG Advaya, commented on these trends: "These patterns indicate that companies are focusing more on keeping their existing employees legally employed. The H-1B program has become more of a holding pattern for workers in the green card queue rather than a mechanism to bring new skilled workers to the US."
Immigration platform Beyond Border notes that approvals for individuals classified as "software engineers" during the labour certification stage have been declining for four consecutive years. According to H1BGrader, labour certifications for the "software engineer" category fell from 40,378 in 2022 to 23,922 through the third quarter of 2025.
Camila Façanha, Head of Legal at Beyond Border, observed: "These rejection rates may reflect heightened, longer-term scrutiny of the H-1B program, particularly its use for software engineering and other technology roles, though current data does not conclusively establish direct causation."
Contrary to arguments from some policymakers who support restrictive immigration measures claiming that foreign-born scientists and engineers constitute "cheap labour," USCIS data tells a different story. In FY 2024, the average annual salary for H-1B professionals in computer-related occupations was $136,000, with a median of $125,000. Additionally, 63% of approved H-1B beneficiaries held a master's degree or higher, confirming that the program continues to attract highly skilled professionals in demand in the US and globally.
