Amid AI Acceleration, H-1B Approvals for Indian IT Firms Drop to a Decade-Low

In a striking shift that underscores the changing dynamics of global tech hiring, the top seven India-based IT firms received just 4,573 H-1B approvals for new employment in FY 2025. This represents a drastic 70% decline compared to 2015 and a 37% drop from FY 2024, according to new findings published by the National Foundation for American Policy (NFAP). The data reveals a broader trend: while Indian IT players are reducing their reliance on the H-1B programme, major us companies are aggressively expanding recruitment of foreign-born professionals to meet their AI development needs.

Among Indian companies, Tata Consultancy Services (TCS) emerged as the only firm to maintain a presence in the top tier of H-1B approvals for continuing employment. However, TCS also reported a notable rise in its rejection rate for Visa extensions—from 4% in FY 2024 to 7% in FY 2025—making its case particularly significant compared to its competitors.

NFAP data further shows that the denial rate for continuing-employment H-1B petitions stood at 1.9% in FY 2025, largely unchanged from the previous year’s 1.8% and slightly lower than 2.4% recorded in FY 2023. Despite these relatively stable denial rates, Indian firms continue to face a steep decline in fresh H-1B approvals.

TCS alone secured 5,293 approvals for ongoing employment in FY 2025, a significant jump from the 1,452 approvals recorded the previous year. For new employment, the firm received 846 approvals, highlighting its continued dependence on the programme despite broader industry contractions.

A Newsweek analysis of H-1B data revealed that only three India-based IT firms were among the top 25 companies receiving approvals for initial employment in FY 2025—a staggering drop from previous decades where Indian firms dominated the H-1B landscape.

Indian IT Firms Shrink H-1B Usage While US Tech Giants Ramp Up AI Hiring

Industry experts attribute the decline in H-1B usage by Indian IT firms to evolving business models, offshoring strategies, and increasing automation, while US tech majors continue to ramp up hiring to support rapid AI innovation.

“Indian-based companies are now delivering IT services using relatively fewer H-1B visas, whereas US technology leaders are increasingly hiring foreign-born graduates—especially from top American universities—to advance AI development in the US,” explained Stuart Anderson, Executive Director of NFAP, in an interview with Newsweek.

The NFAP study is based on official data from the US Citizenship and immigration Services (USCIS) H-1B Employer Data Hub, offering an authoritative picture of how global talent flows are shifting in the age of AI.

The report also contextualizes these trends against proposed Trump-era policy considerations, including a potential $100,000 fee for each new H-1B application, which could further reshape employment strategies for companies hiring skilled foreign workers.

US Tech Leaders—Amazon, Meta, Microsoft, Google—Dominate H-1B Initial Approvals

For the first time in H-1B programme history, American tech giants hold the top four positions for initial-employment approvals:

• Amazon: 4,644 approvals
• Meta Platforms: 1,555 approvals
• Microsoft: 1,394 approvals
• Google: 1,050 approvals

TCS stands out as the only Indian firm in the Top 5 for new H-1B hires, securing 846 initial approvals this year.

In continuing-employment approvals, Amazon once again leads with 14,532 approvals, followed by TCS (5,293), Microsoft (4,863), Meta (4,740), Apple (4,610), and Google (4,509). TCS’s presence among these major US giants highlights its sustained significance in the global IT landscape.

Notably, H-1B initial-employment petitions count toward the annual cap of 65,000 visas, while an additional 20,000 exemptions apply to candidates with US master’s degrees or higher.

Among Indian competitors, LTIMindtree (20th) and HCL America (21st) barely secured spots in the Top 25 H-1B employers list for FY 2025.

US States and Cities With the Highest H-1B Approvals

According to NFAP, the states receiving the highest number of approved H-1B petitions for initial employment in FY 2025 were:

• California: 21,559 approvals
• Texas: 12,613 approvals
• New York: 11,436 approvals
• New Jersey: 7,729 approvals
• Virginia: 7,579 approvals

On a city-wide basis, New York City led the nation with 7,811 approvals, followed by:

• Arlington, Virginia – 4,836
• Chicago – 2,923
• San Jose – 2,383
• Santa Clara – 2,286
• San Francisco – 2,222

Commenting on the evolving talent dynamics, Amanda Brill, founder and managing partner at Brill Immigration, told Newsweek: “Many immigrants are performing highly skilled work that American workers have not yet been trained to do.”