Recently, SightsIn Plus organized a panel discussion moderated by Romesh Srivastava on the topic of “Donald Trump 2.0 and Its Impact on U.S. Jobs for Indians.”
Panelists included topnotch HR leaders Milind Mutalik and Usha Chirayl, who discussed the potential repercussions of Trump’s return to the U.S. presidency and the expected policies on the H-1B visa program.
Here are the brief of our discussion, for full discussion watch the Video on YouTube.
Background: Trump’s Past H-1B Visa Restrictions
During Trump previous administration in 2020, significant changes to the H-1B visa program impacted many Indian professionals seeking work in the U.S.
Under his leadership, H-1B visa norms were tightened, resulting in only 84.5% of applications being approved—a historic low.
Additionally, H-1B registration fees rose by 2000%, jumping from $10 in 2019 to $215 in 2020.
Companies were also mandated to pay foreign-born employees 40% to 100% more than U.S.-born professionals for comparable roles, making the visa a costly proposition for many employers.
In 2023, under Biden’s administration, Indian nationals, who make up the majority of H-1B recipients, were granted 72.3% of the visas—equivalent to 279,000 out of a total of 386,000.
Expected Changes in the H-1B Program Under Trump 2.0
With Trump now re-elected, Milind and Usha examined the anticipated policies likely to impact the H-1B visa program.
Milind noted that while Trump’s commitment to immigration reform is strong, his priority might focus more on tackling illegal immigration than on further restricting H-1B visas, which contribute positively to the U.S. knowledge economy.
Nonetheless, he expects stricter policies for visa extensions and green card approvals, making it harder for foreign-born employees to stay in the U.S. long-term.
Usha pointed out that while modifications to the H-1B program could reduce the number of people moving to the U.S. or increase visa costs, demand for specialized talent remains high due to a local skills shortage.
Alternative Approaches: Offshore and Nearshore Operations
Discussing alternative strategies for companies facing potential H-1B restrictions, Milind suggested that IT and Tech firms may increasingly turn to offshore and nearshore solutions.
With stricter H-1B policies, companies may expand operations in regions like Canada, Mexico, Brazil, and Argentina to access skilled professionals without relying on U.S. immigration approvals.
Meanwhile, Usha added that firms are increasingly turning to local hiring, upskilling, and reskilling to bridge skill gaps, particularly in areas where specialized skills are less critical.
Skill Development and Remote Work as Viable Solutions
Usha emphasized that, to combat the skills shortage, companies may focus on training U.S. employees in essential skills.
While this approach could reduce dependency on foreign talent, the acute demand for technical skills means that Indian IT companies and U.S. firms will still need to hire foreign/Indian experts for niche roles.
Remote work and shorter-term visas, she noted, are also viable options for U.S. employers looking to access global talent without the long-term commitment required for H-1B visas.
Balancing Talent Needs with Economic Priorities
Milind concluded that if the skills gap persists and companies fail to meet their talent needs through local hiring or nearshoring, it could negatively impact the U.S. economy.
He stressed that the administration will need to strike a balance between limiting immigration and ensuring the availability of skilled talent to support U.S. economic growth.
The panelists agreed that while stricter H-1B policies could introduce challenges, companies would adapt through a mix of local hiring, upskilling, and international expansion.
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