The Indian IT sector is under fresh pressure following the U.S. administration’s imposition of a $100,000 fee on new H-1B visas, which rattled investor confidence and triggered steep declines in IT company stock valuations. Reuters Shares of marquee firms like Infosys and Wipro dropped meaningfully, as markets interpreted the move as a threat to the long-standing outsourcing and talent mobility model. Reuters Analysts say that while the new rule applies to fresh visas, the signaling effect heightened regulatory risk—has unnerved global tech buyers.
At the same time, domestically, Indian IT firms are accelerating initiatives to reduce reliance on foreign talent and bolster local capacity. Nasscom and industry bodies report that India’s tech and software exports are expected to grow, driven by prioritization of high-value services (AI, analytics, cloud) over labor arbitrage. Still, this transition is rocky firms are struggling to balance legacy contracts, margin pressures, and talent retooling.
In short, the IT sector is navigating a perfect storm: external headwinds in visa mobility and shifting regulations, combined with internal demands to modernize, re-skill, and reposition for next-gen digital mandates.