US immigration rules are blocking Indian talent, say tech leaders

Hyderabad: As the global tech race accelerates, US companies say they are losing their edge—not because of a talent shortage, but because of immigration roadblocks. A growing number of American tech executives warn that restrictive immigration policies are shutting out high-skilled Indian professionals, especially in fast-moving sectors like AI, software development, and semiconductor engineering.

The result, they say, is a bottleneck that’s strangling innovation and weakening the country’s competitive edge. In a recent survey by US-based legal firm Manifest Law, over 500 senior leaders in the tech industry pointed to a range of immigration challenges—from capped visa quotas and intensified scrutiny to surging govt fees and falling H-1B registrations. A striking 78% of respondents said that current immigration restrictions are affecting their ability to hire global talent, with Indian professionals being the most affected.

“The roles most impacted are STEM-related—software engineers, AI professionals, hardware specialists, and even startup founders,” said Nicole Gunara, principal immigration lawyer at Manifest Law. “These aren’t just workers. They are innovators.

And companies are struggling to get them through the door,” he explained.The rising cost of hiring international talent emerged as a key obstacle. The US Citizenship and Immigration Services (USCIS) recently implemented a 70% hike in the base H-1B petition fee for large employers, and the initial registration fee for the H-1B visa lottery skyrocketed from $10 to $215 for fiscal year 2025.

Visa delays and escalating legal fees have only added to the burden.Indian professionals, in particular, are bearing the brunt of these changes. From 2022–2023, 72.3% of all H-1B visas were granted to Indian nationals, and nearly half of all science, technology, engineering, and mathematics optional practical training (STEM OPT) applicants in the US were from India, according to Manifest Law. “Indian nationals fill a massive part of the US STEM talent gap,” Gunara noted.

“The US simply doesn't have the domestic pipeline to keep up. At some point, policymakers will have to recognize that bringing in highly skilled immigrants is the fastest and most effective solution,” he said. The survey revealed significant support for targeted immigration reforms. About 56% of tech leaders support raising the H-1B cap, while the same number back the creation of a new visa specifically for venture-backed startups.

Other suggestions include industry-specific visa programmes (62%) and clearer pathways from student visas to green cards (64%).But the consequences of current policies may go beyond the hiring crunch. Orn Bodvarsson, a senior economist and academic, warned that the long-term appeal of the US is eroding for Indian students and professionals alike. “They are facing fewer opportunities, higher risks, and lower returns on education investments. Over time, that means reduced demand for US university admissions and job offers. The bottom line is short- and long-term Indian immigration will fall,” he cautioned.As the US strives to lead in next-generation technologies, experts say its success may depend not just on funding and infrastructure—but on whether it welcomes the global talent needed to build the future.