H‑1B visa rules outdated, US tech execs warn; Indian techies vital to maintain global edge

Time of India

4 hours ago

US technology firms say their global edge is under threat due to restrictive immigration policies that block Indian talent from entering the country. Senior leaders warn that this is slowing innovation in fields like artificial intelligence, software engineering, and semiconductors.
Survey highlights deep concern
A new survey by Manifest Law of over 500 senior tech leaders shows deep concern about the state of
US immigration
policy — and its long‑term impact on the technology sector. According to the survey, 93% of tech leaders said high‑skilled immigrants are vital for US global competitiveness, and 35% called their role 'critically important' to their company's future.
'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,' she added.
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Shortages in AI talent drive urgency
The
AI talent shortage
is the second biggest challenge impacting skilled immigration, after global competition for workers, the survey said. Tech leaders warn that access to AI talent is vital for long‑term growth. According to McKinsey, firms that adopt AI and digital tools outperform others by as much as six times in shareholder returns. Without faster, more modern immigration policies, the US risks falling behind in critical industries.
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Visa costs and delays rising sharply
High government visa fees are the biggest barrier for firms trying to hire international staff, followed by delays and rising legal costs. The US Citizenship and Immigration Services (USCIS) increased the base H‑1B petition fee for large employers by 70%. The initial H‑1B registration cost rose from $10 to $215 for fiscal year 2025. According to Manifest Law, Indian professionals have been hit hardest — from 2022–2023, 72.3% of all H‑1B visas went to Indian nationals, and nearly half of all STEM Optional Practical Training (OPT) applicants were from India.
'Indian nationals fill a massive part of the US
STEM talent gap
,' said Gunara. '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.'
Support grows for targeted reforms
The survey found strong support for targeted reforms. About 56% of leaders want an increased H‑1B cap, and 56% support a new visa for venture‑backed startups. Another 62% called for industry‑specific visa programmes, and 64% wanted clearer pathways from student visas to green cards. In total, 74% said the immigration process needs to be simpler, and 67% supported investing in better technology to modernize it.
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'We see firsthand how high‑skilled legal immigrants drive innovation in the tech sector — from founding startups to leading cutting‑edge projects,' said Gunara. 'Ensuring they have a clear and timely path to contribute isn't just good policy — it's good business.'
Warning on long‑term impact
Orn Bodvarsson, a senior economist and academic, warned that current policies could reduce the long‑term appeal of the US for Indian students and professionals. '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 said.
As the US aims to lead in next‑generation technologies, experts say its future depends not just on investment and infrastructure, but also on its ability to attract global talent. Without a more open and modern immigration process, it risks falling behind in AI, entrepreneurship, and other critical areas of growth.
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