India's IT Giants Poised for AI-Led Transformation Amidst Visa Hurdles

India's USD 280-billion IT industry is navigating visa challenges and geopolitical tensions as it accelerates investments in AI and expands global capability centres (GCCs). Elevated H-1B visa fees risk adding significant costs, prompting firms to bolster offshore delivery while multinationals eye India's potential to manage regulatory risks.

India's USD 280-billion IT sector is navigating a complex landscape as it heads towards 2026, grappling with visa-related challenges and geopolitical uncertainties. The industry is making its largest push yet into artificial intelligence and the expansion of global capability centres (GCCs), aiming to sustain its competitive edge.

The U.S., the largest export market for Indian IT, has introduced tight scrutiny on the H-1B visa program, proposing significant fee hikes and potential outsourcing taxes. This has led to market volatility, impacting travel plans and IT stocks. As a response, major players are shifting focus towards offshore delivery and boosting local hiring within the U.S.

Despite these challenges, multinational companies continue to show interest in India's GCC potential. Industry leaders highlight that investment in AI and next-gen technologies will be instrumental in maintaining growth, with India set to be a significant hub for AI developments and tech-driven solutions beyond 2025.