The opportunity for India in the H-1B squeeze
The US’s H-1B squeeze is a reminder of the opportunity and potential for world-class innovation for Indian IT at home
In my five decades in the IT industry, I have come to accept one enduring truth, that “uncertainty is the only certainty”. The recent hike in H-1B visa application fees is a reminder of this. It brings back memories of disruptions such as the dot-com collapse, the 2008 financial crisis, and the Covid-19 pandemic. Each of these seemed existential at the time, yet out of them emerged resilience and renewed confidence in the Indian IT sector’s ability to adapt.
The US-India technology corridor, meanwhile, has long thrived on complementary partnerships. The H-1B visa was a policy innovation that addressed America’s consistent shortage of STEM professionals. It powered US innovation while enabling Indian talent to contribute globally. However, as costs rise, the larger story now is less about compliance, but more about how India can build resilience in its talent pipelines and recalibrate partnerships. Indian firms have already been reducing visa-dependency over the years through local hiring, reskilling, and hybrid delivery models. While policy measures may cause short-term friction, they cannot undo the strength of the US-India technology collaboration.
Adaptability as the defining strength
The story of Indian IT has always been one of adaptability. Each crisis tested us, but also revealed our potential. The dot-com bust revealed the hollowness of the stereotype that Indian IT was simply “cheap labour”. That view was never accurate. What truly defined the IT sector was a talent ecosystem of disciplined, creative, and determined professionals with a can-do attitude and solution-mindset, who built trust through innovation and impeccable execution.
The financial crisis of 2008 once again demanded leaner operations and new delivery models. Yet, Indian firms not only survived but deepened partnerships abroad. The pandemic was the ultimate test when offices shut overnight, but within weeks, hundreds of thousands of employees were working from home, keeping global systems running without interruption.
This was not just resilience, but reinvention at scale. It was the outcome of a culture of continuous learning, flexibility, future readiness and efficient management of talent. Also, industry bodies such as Nasscom ensured that non-compliance rarely slipped through. Indian IT’s reputation was built on responsibility and governance, and that credibility is now India’s strategic asset.
The rise of Global Capability Centres underscores this journey. Multinationals that once focused on cost advantages, now stay for ingenuity and problem-solving. Indian IT firms themselves have grown into innovation-driven enterprises, shaping solutions across health care, finance, energy, education, supply chains, and mobility. As Clayton Christensen emphasised in The Innovator’s Solution, the real task is not defending the present but building capabilities for the future. In the era of AI- and Agentic AI-driven disruption, this lesson is urgent as we are required to reinvent and reimagine the future with extreme agility.
Talent as the ultimate currency
Talent flows to where opportunities exist, and history shows that no border can contain it for long. From the Silk Route to the Industrial Revolution, from post-war America to modern-day China, mobility of talent has always driven prosperity. Nations that welcomed it thrived, and those that resisted stagnated.
India, in its early years of Independence, adopted institution-building to nurture its brightest minds. The India Institute of Science, IITs, AIIMS, Tata Institute of Fundamental Research, Indian Space Research Organisation, Council of Scientific and Industrial Research and so on, gave scientists and engineers both purpose and world-class platforms. Many, who could have left, chose to stay and build. My personal story also finds resonance here as I went to the US for higher studies, but returned due to an urge to contribute to India. The Tata Group reinforced this philosophy. Long before it became fashionable, the group invested in education and people, proving that talent, nurtured with foresight, becomes the true foundation of progress.
Globalization and India’s road ahead
Globalisation is not a passing phase; it is a reality. Our economies, supply chains, and technologies are deeply interconnected and interdependent. Cultural battles and barriers, therefore, serve us no good. For India, this means staying true to our ethos of Vasudhaiva Kutumbakam (the world is one family) while promoting collaboration, inclusion, and dialogue.
At the same time, India cannot afford to be overly dependent on a few countries. We must expand partnerships with Europe, East Asia, Africa, West Asia, Latin America and Oceania. In today’s volatile world, trade and investment are easily weaponised.
Self-reliance, therefore, is an imperative to withstand external shocks.
According to the economist Michael Porter, a nation’s competitive advantage rests on four interconnected forces: The quality of its factors of production, the sophistication of its domestic demand, the strength of its supporting industries, and the competitiveness and structure of its firms. Seen through this lens, India’s path ahead becomes clearer.
India must invest in advanced research ecosystems, state-of-the-art educational institutions, stronger intellectual property regimes, closer academia–industry collaboration, and incentives for entrepreneurship. Also, India is a huge market, confronting challenges of scale in health care, finance, education, and sustainability. If our entrepreneurs rise to these challenges with imagination, the solutions they build here can not only transform India but also set global standards. Digital public goods such as Aadhaar and UPI are prime examples.
India’s start-up ecosystem has grown rapidly, but fragmented linkages between research institutions, venture capital, and established firms make it critical to build stronger bridges between discovery and deployment, so that ideas translate into impact. And, finally, the structure of Indian firms matters greatly, and sustaining a culture of competition, global ambition and sound governance, will be vital for India’s leadership.
India’s present challenge is to consolidate existing strengths while building new ones. Government, business, and academia must act in concert. Policies should enable, not obstruct. Above all, credibility matters. A high “say–do ratio” inspires confidence in talent, entrepreneurs, and investors alike.
The world today needs imagination that turns disruption into opportunity and uncertainty into progress. India, with its cultural depth and its potential for growth, is uniquely positioned to lead with this vision. If we invest in talent, align policy with purpose, and nurture collaboration, India’s best days are ahead of us.
S Ramadorai is former CEO and MD, Tata Consultancy Services, and chairperson, Karmayogi Bharat. The views expressed are personal
