H-1B Registrations from India Plunge 38.5% for FY 2027: The Sharpest Drop in Seven Years
Updated: 4 hours ago
WASHINGTON, October 9, 2026 — H-1B registrations submitted from India for the FY 2027 cap season have collapsed to their lowest level in seven years, according to exclusive data compiled by The Economic Times. Only 106,000 unique registrations were filed from India, down from 172,000 last year — a decline of 38.5%.
The drop is not uniform across employer categories. While global IT majors with deep pockets maintained filings, Tier-2 vendors trimmed registrations by more than half, and start-ups — particularly in e-commerce and fintech — almost disappeared from the pool, according to immigration attorneys.
Three Converging Factors
Industry analysts attribute the slump to three separate but simultaneous pressures.
First, filing fees are rising. USCIS will increase the Form I-129 filing fee for H-1B petitions on October 16, 2026, from $460 to $780. The increase prompted many mid-sized IT firms to cut sponsorship volumes before the deadline.
This comes on top of an existing $100,000 payment requirement for certain new H-1B petitions, imposed under a presidential proclamation in September 2025 and extended through September 2027. That fee remains subject to ongoing litigation .
Second, this was the first full cycle using wage-based selection priority. Under the new weighted system, which took effect February 27, 2026, registrations receive multiple entries based on the offered wage level — four entries for Level IV positions, down to one for Level I . This structure favours higher-salary roles, which often fall outside traditional offshore-outsourcing models.
Third, US clients have postponed discretionary tech projects amid recession fears, reducing demand for onsite staffing.
The Sector Split: Tier-1 Holds, Tier-2 Retreats
The aggregate figures obscure a widening gap between employer types.
The six largest Indian IT firms — TCS, Infosys, HCLTech, Wipro, LTM, and Tech Mahindra — saw combined registrations fall 92% to 1,763 in FY 2027 from 21,919 in FY 2026, according to data cited by BusinessLine and The Economic Times .
The scale of individual declines is striking:
Company | FY26 Registrations | FY27 Registrations | Change |
Infosys | 8,886 | 759 | -91.5% |
TCS | 5,955 | 284 | -95.2% |
HCL America | 3,855 | 387 | -90% |
Wipro | 985 | 112 | -88.6% |
Tech Mahindra | 1,027 | 43 | -95.8% |
LTM | 1,211 | 178 | -85.3% |
IBM and Accenture also recorded steep declines — 95.6% and 94% respectively — while US technology firms like Microsoft and Apple saw more modest reductions of 31.8% and 16.3% .
Alternative Routes: L-1B and B-1 in Lieu of H-1B
For companies seeking to move personnel to the US without triggering the $100,000 fee, two alternative visa categories are drawing renewed attention — though both come with significant limitations.
The L-1B specialised knowledge visa allows multinational companies to transfer employees with proprietary knowledge from a foreign affiliate to a US office.
Unlike the H-1B, it does not have an annual cap or a lottery. Eligibility requires one continuous year of employment with the foreign entity within the preceding three years, and the role must genuinely require company-specific expertise not readily available in the US labour market .
The B-1 in lieu of H-1B option permits short-term professional assignments for workers remaining on a foreign payroll. However, US consulates have recently begun routing these applications to the State Department‘s Visa Office in Washington for final review, anticipating longer processing times and closer scrutiny . This category is explicitly not intended for entry into the US labour market and should be used only in limited circumstances.
What This Means for Mobility Managers
The practical implications for companies planning US projects are significant.
A decline in registrations today will narrow the talent pipeline for projects commencing in October 2027, at the start of the FY 2027 cap year. Employers might want to speed up near-shore hiring in Canada and Mexico or increase remote delivery capabilities in India.HR teams should also audit their visa strategy across categories. The L-1B route may suit employees with genuine proprietary knowledge, while the Specialist Skills stream under Australia’s subclass 482 — or Canada’s work permit pathways — offer alternative deployment options.
The drop may give USCIS some processing relief in the short term. But for Indian IT firms with ambitions in AI and quantum computing contracts expected next year, the reduced pipeline could slow knowledge-transfer plans at precisely the moment demand accelerates.
Quick Reference Summary
Aspect | Detail |
India Registrations FY27 | 106,000 (down from 172,000) |
Decline | 38.5% — sharpest in seven years |
Form I-129 Fee Increase | October 16, 2026 ($460 to $780) |
$100,000 Fee Status | Extended to September 2027; under litigation |
Wage-Based Selection | Effective February 27, 2026 |
Tier-1 IT Declines | TCS -95.2%; Infosys -91.5%; HCL -90% |
Alternatives | L-1B (specialised knowledge); B-1 in lieu (limited) |
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