India’s IT industry faces braces for jolts as Trump tightens H-1B visa rules

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US President Donald Trump on Friday issued rules for tightening a new executive order for the H-1B visa program, which threatens India’s IT industry and other sectors to rely heavily on skilled foreign workers.

India is the biggest benefit of the H-1B program, which allows US companies to hire skilled foreign workers. Industry analysts said new sanctions could hire services in the IT and technology sectors, increase costs and disrupt projects, which could affect thousands of Indian professionals working in the United States at the moment.

Under the new order, applications for the H-1B visa will be considered only only if the sponsoring company will pay 000 100,000 additional, in each application. The ban is implemented on September 21, 2025, and will be replaced for 12 months initially.

The Department of Homeland Security and the State Department has been instructed to stop admission to any candidate whose request is not with this payment and is to tighten surveillance to prevent the misuse of the BA visa for admission to unauthorized jobs.

The White House justified the move, saying that some companies, especially in the IT sector, were misusing the H-1B program, and instead of US workers, replacing cheap foreign wages.

It says, it has not only suppressed wages but also posed threats to national security. According to the administration, the purpose of the policy shift is to provide better employment opportunities to US students and graduates, and to ensure that companies only hire highly skilled and high -value foreign professionals.

Official data shows that in the financial year 2024, a total of 219,659 H-1B visas were issued worldwide, in which India has calculated the overwhelming majority.

According to USCIS data, 71 % of the approved H-1B applications were for Indian citizens, while China is second to 11.7 %. The remaining eight countries jointly contributed less.

The top 10 countries and their relevant number were:

1. India – 283,397 (71.0 %)

2. China – 46,680 (11.7 %)

3. Philippines – 5,248 (1.3 %)

4. Canada – 4,222 (1.1 %)

5. South Korea – 3,983 (1.0 %)

6. Mexico – 3,333 (<1 %)

7. Taiwan – 3,099 (<1 %)

8. Pakistan – 3,052 (<1 %)

9. Brazil – 2,638 (<1 %)

10. Nigeria – 2,273 (<1 %)

These figures, which are directly developed by USCIS report H-1B specialty occupation workers, the characteristics of the financial year 2024, clearly show that India has been most affected by this executive order.

The same report revealed that 64 % of the approved H-1B cases are concentrated in the computer/software sector, followed by engineering/architecture 10 %, education 6 %, management skills 5 %, and health care 4 %.

This shows that even though the tech industry will suffer the result of new policy, education, engineering, and health care sectors, it will still feel the effect.

Naeem Sikhiya, an immigration attorney based in Dallas, has explained that the executive order applies to all H-1B holders, but its effect will be different in terms of sector.

Although this order was technically applied to all special professions, he said, the heavy pressure is on its and technology companies, which the government believes are the basic abuse of the program.

Sakhiya noted that the main role of health care such as nursing and medical positions may be eligible for national interest to prevent staff shortages in hospitals, but sponsors will need to provide strong evidence to preserve such exemption.

Regarding Pakistan, Sakhiya states that most Pakistani professionals on H-1B visa also come from computers, software and engineering sectors, which have a small significance in health care, education and administrative roles.

New, 000 100,000 fees and tough examination will also affect Pakistani IT professionals and their supporting companies. The roles of engineering and education may also face obstacles, though the hospital and medical systems can potentially get discounts by proving the shortage of local workforce, which can limit the effects of health care.

Sakhia emphasized that this policy is primarily a challenge for countries like India and China, which together contributed more than 80 % of all H-1B requests.

India, as the world’s largest supplier of IT professionals, is directly in cross -hirs.

He said that the executive order would give India a major blow to the tech industry, and that it was particularly surprising that Modi and Trump had publicly showed close relations on social media.

“It shows that although political optics can suggest warmth, the reality of economic and immigration policy is moving in different directions.”

For Pakistan, its impact will be smaller than India, but sponsorship for professionals in IT, engineering, and education will be more expensive and difficult.

Only Pakistani professionals who can clearly show that they are extremely skilled and important are likely to succeed.

However, hospitals and healthcare systems can provide some relief to Pakistani doctors and nurses if they can secure national interest exemption, which keeps them in filling important roles in the US health care sector.