Tue Sep 30 06:52:00 UTC 2025: **FOR IMMEDIATE RELEASE**

**Trump’s H-1B Crackdown to Fuel India’s Global Capability Center Boom**

**BENGALURU/HYDERABAD – September 30, 2025** – Stricter U.S. visa policies under President Donald Trump are poised to significantly accelerate the growth of Global Capability Centers (GCCs) in India, according to economists and industry experts. The move is expected to push U.S. firms to shift critical operations to India, leveraging the country’s skilled workforce and established infrastructure.

India, already home to over half of the world’s 1,700 GCCs, is seeing a surge in activity as companies reassess their global talent strategies. Recent measures by the Trump administration, including a substantial increase in H-1B visa application costs and renewed efforts to tighten visa regulations, are driving U.S. firms to reconsider their reliance on foreign workers.

“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” said Rohan Lobo, partner and GCC industry leader at Deloitte India. He noted that several U.S. companies are actively reassessing their workforce needs, with plans underway to shift more strategic and innovation-led mandates to their India-based centers.

Areas like AI, product development, cybersecurity, and analytics are expected to see a particularly strong influx of work. Lalit Ahuja, founder and CEO of ANSR, highlighted a “sense of urgency” among companies looking to establish or expand their GCC presence in India.

While some experts foresee a potential “gold rush” of offshoring, others remain cautious. Ramkumar Ramamoorthy, former managing director of Cognizant India, warned of potential “extreme offshoring.” Additionally, the proposed HIRE Act, which could impose a 25% tax on outsourcing work overseas, poses a potential disruption to India’s services exports.

“For now, we are observing and studying, and being ready for outcomes,” said the India head of a U.S. drugmaker’s GCC, reflecting a cautious approach among some industry players.

The shift comes amid increasing India-U.S. trade tensions, with visa curbs and potential tax penalties threatening to undermine India’s cost advantage and cross-border service flows. While the $283-billion Indian IT industry might experience some strain, the surging demand for GCC services is expected to provide a significant cushion.

Nomura analysts suggest that lost revenues from H-1B visa-reliant businesses could be partially offset by increased service exports through GCCs as U.S. firms seek alternative solutions to immigration restrictions.

Before the increase in fees and new H1-B selection process, India was projected to host the GCCs of more than 2,200 companies by 2030, with a market size nearing $100 billion. The shifts caused by the H1-B crackdown may cause it to exceed expectations.

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