US Crackdown On H1-B Visa To Fast-Track AI Adoption, Believes Former Tech Mahindra CEO

Former Tech Mahindra Chief Executive C.P. Gurnani has said the US government's move to increase fees for H-1B visa to $100,000 won't hurt Indian IT companies and may even benefit the industry in the long run.

Speaking to NDTV Profit, Gurnani expects the crackdown on H-1B visas will eventually lead to a faster adoption artificial intelligence in the industry while adding that Indian IT companies are not body shopping anymore.

"The industry is in a mature state. I do not think this act will have any impact. In fact, it will help. All of us in the IT industry will realise that we need to shift towards AI a little faster," he said.

"We need to shift towards products and platforms, just like our Prime Minister says we need to be more self-reliant. We need to be stronger in our delivery," he added.

CP Gurnani, who led Tech Mahindra for over a decade, believes the move will hurt the US more than India.

“I don’t see this as permanent. This hurts US more than it hurts Indian companies, which have reduced their H-1B dependence by 60% in the last five years. In contrast, the dependence on H-1Bs has been going up for American counterparts," he said.

Last week, US President Donald Trump announced a $100,000 fee for H-1B visa applications, with the White House later clarifying that it is a one-time fee and will only be applicable to new petitions.

Midcap IT companies have already clarified to the exchanges that the move will not have any material impact, citing reducing dependence on visas and focus on local hiring.

"We will evolve, and that evolution to me is more products, more platforms and more AI. If this kind of policy remains, it will benefit India in the long run," Gurnani said.

The former Tech Mahindra CEO also ruled out any near-term impact as well, adding, "I’m very convinced there is no short-term pain. We will be able to deliver all our projects without getting 1 new H-1B visa for the next year."