Tighter H-1B rules, tech layoffs push Indians to alternative US visas

Business Standard

16 hours ago

As scrutiny around H-1B work visa applications intensifies and tech layoffs continue to rattle the US job market, Indian professionals and their employers are increasingly exploring alternative visa routes to live and work in the US, reported The Economic Times.
Among the most sought-after options now are the L-1 and O-1 non-immigrant visas. Simultaneously, there's a significant uptick in interest for the EB-5 immigrant investor visa programme.
'These trends aren't entirely new, but we've seen a sharp rise in the number of people reaching out over the past few months,' Gnanamookan Senthurjothi, a US immigration attorney, told The Economic Times.
The shift comes as the US, under the Donald Trump administration, has ramped up its scrutiny of H-1B visa applications since the start of the year. According to recent data from the United States Citizenship and Immigration Services (USCIS), H-1B visa approvals this year dropped by 27 per cent Year-on-Year—marking the lowest since the pandemic-hit FY21.
Each year, the US allots 85,000 H-1B visas to foreign professionals, with Indians accounting for nearly 70 per cent of the total.
However, a wave of layoffs across major tech firms including Microsoft, Google, and Intel has deepened uncertainty among Indian workers in the US.
'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at the Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.'
Rise in L-1 and O-1 applications
In response to growing apprehensions around the H-1B process, more applicants are turning to L-1 and O-1 visas—both of which do not have annual numerical limits.
The L-1 visa facilitates intracompany transfers, while the O-1 visa is designed for individuals with extraordinary ability in fields such as science, arts, or business.
'Part of this [spike in demand] is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of it appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.'
Canada as a staging ground
Adding to the shift, companies are also considering temporary assignments outside the US as a strategic move to qualify employees for other visa categories.
'What we are also seeing is that some companies are transferring their employees to countries like Canada or elsewhere outside the US for a short time so that they will qualify for the L-1 visa,' Sukanya Raman, country head – India & GCC practice team at Davies & Associates LLC, was quoted as saying by The Economic Times.
This tactic typically applies to professionals in managerial roles who may later transition to the EB-1C visa, which can lead to a green card, she said.
There's also rising interest in the EB-2 NIW (National Interest Waiver)—a green card category for individuals with advanced degrees whose work is deemed to benefit the US on a national level.
EB-5 investor visa sees surge
The EB-5 immigrant investor visa has also seen a notable 50 per cent increase in demand since January 2025, according to Raman.
'These are in current status for Indian nationals, which means that visas are available and applicants can receive their authorisation and travel documents in just 3-6 months,' she noted. 'This allows them to stay in the US legally.'
Raman also highlighted a growing number of Indian families on H-1B visas applying for EB-5, particularly when their children are nearing the age of 21 and risk 'aging out'—becoming ineligible to stay as dependents under their parents' visa status.