India's premier technology trade body, Nasscom, has issued a strong critique of a proposed overhaul to the United States' H-1B visa selection process. The core of the concern is a plan to move away from the traditional lottery system to a model where selection is weighted by the salary level offered. Nasscom argues this shift will harm innovation, disadvantage smaller companies and research bodies, and ultimately weaken America's competitive edge, particularly in critical fields like artificial intelligence.
Core Concerns: From Neutral Lottery to Wage Ranking
The proposed rule, put forward by the US Department of Homeland Security, marks a significant departure from the long-standing neutral lottery. While Nasscom acknowledges the intent to promote high-skill employment and protect US wages, it warns that the new wage-weighted selection mechanism introduces legal and economic risks. The body states that by granting multiple selection entries based on higher wage levels (Occupational Employment and Wage Statistics levels), the focus dangerously shifts from the statutory requirement of a "specialty occupation" to mere wage ranking.
This model, Nasscom highlights, fails to account for significant geographic and occupational variations in pay. Small and mid-sized enterprises (SMEs), startups, universities, and research institutions often operate with moderate, market-appropriate salary structures. A system that prioritizes the highest wages would inadvertently sideline these crucial players in the innovation ecosystem, concentrating opportunities only within large corporations that can afford top dollar.
Impact on Talent Pipeline and US Strategic Goals
A major point of contention is the impact on early-career professionals and the STEM talent pipeline. Nasscom notes that H-1B petitions at Level I and Level II wage bands frequently represent entry-level roles for graduates from US universities in science, engineering, and computing. These positions are vital for allowing fresh talent to gain industry experience and mature into senior innovators.
Restricting opportunities at this entry level under a wage-weighted system could discourage international students from pursuing advanced education in the United States. This outcome would directly contradict stated US goals of strengthening competitiveness, driving innovation, and supporting higher education. Nasscom emphasizes that Indian nationals, who constituted about 71% of H-1B holders last year, are central to US leadership in IT and AI. Attracting this talent is also framed as a reinforcement of the strategic Indo-US partnership in the Indo-Pacific.
Economic Footprint and Call for Phased Implementation
Underlining the substantial contribution of its member companies, Nasscom pointed out that they collectively support over 1.6 million skilled jobs across the United States, contributing a massive $198 billion to the US GDP. With a direct presence in more than 25 American communities, these companies foster inclusive growth in tech hubs outside Silicon Valley and New York, including in Texas, North Carolina, Ohio, and Illinois.
The trade body warns that a sudden shift would create uncertainty, increase compliance complexity, and disrupt workforce planning, especially for smaller firms. If a wage-weighted approach is to be pursued, Nasscom strongly advocates for a phased implementation with sufficient lead time. It recommends delaying any changes until the Fiscal Year 2028 lottery cycle to give employers adequate runway to adapt.
Nasscom's statement aligns with concerns raised in a joint US congressional letter dated October 30, 2025, which also stressed the importance of Indian talent for America's innovation ecosystem and defence industrial base. The final plea is for a balanced, consultative approach to ensure reforms strengthen, rather than inadvertently weaken, the United States' global innovation advantage.
