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Op-Ed OCTOBER 16, 2026 | The Indian Eye 14

America First, Indian Tech Last?

The H-1B squeeze tests a troubled

India-US partnership

The larger lesson is uncomfortable. India-US economic ties are becoming less about

mutual accommodation and more about negotiating the terms of access

ASHISH K SINGH Indian companies to invest more ag-
gressively in higher-value services,
or years, Indian technology artificial intelligence, product devel-
companies and the United opment and domestic innovation.
FStates have been among the There is also a larger diplomatic
biggest beneficiaries of each other’s question. India and the United States
rise. India supplied the engineers, have spent the past decade describing
programmers and technology pro- their relationship as a strategic part-
fessionals that powered America’s nership based on shared democratic
digital economy, while the United values, economic complementarity
States became the largest and most and common concerns about China.
lucrative market for India’s IT in- But strategic partnerships ultimately
dustry. That comfortable equation is depend on economic interests being
now being rewritten. Washington’s aligned.
latest crackdown on the H-1B and The stalled trade negotiations
employment-based immigration sys- expose the problem. India wants
tem — including the suspension of predictable access to the American
major Indian IT companies from the For Indian IT companies, the immediate response is likely to be acceleration rather market. Washington wants greater
US programme for sponsoring for- access to India and fewer barriers for
eign workers for green cards — sends than retreat (File photo) American companies. Now immigra-
a clear message: Indian technology tion has become another bargaining
may be welcome in America, but In- gument is straightforward: the H-1B dence on fresh H-1B applications, point, even if it is not formally part of
dian talent increasingly comes with a system was designed to fill genuine expanding local hiring in the US the trade negotiations.
political price. skill shortages, not to allow compa- and moving more work to delivery New Delhi therefore faces a deli-
This is more than an immigra- nies to replace American workers centres in India and other countries. cate choice. It cannot negotiate every
tion dispute. It is a test of the eco- with cheaper foreign labour. The Eligible H-1B registrations for fiscal American immigration decision on
nomic foundations of the India-US administration says IT outsourcing 2027 fell 38.5 per cent from the previ- behalf of Indian companies, nor can
relationship at precisely the moment companies have abused the system ous year, reflecting both higher costs it allow the interests of its technology
when the two countries are struggling and that tighter scrutiny, higher costs and changes to the selection system. sector to become collateral damage
to complete a long-promised trade and restrictions are necessary to That may ultimately produce in a wider dispute over trade and
agreement. Trade negotiations have protect American jobs. The White an unintended consequence for the geopolitics.
once again stalled, with Washington House says H-1B registrations from United States. If bringing Indian The larger lesson is uncomfort-
and New Delhi unable to bridge dif- the largest IT outsourcing companies professionals to America becomes able. India-US economic ties are
ferences over tariffs, market access have already fallen sharply following too expensive or uncertain, Indian becoming less about mutual accom-
and India’s purchase of Russian oil. earlier restrictions. companies will have a greater in- modation and more about negotiat-
The timing could hardly be more There is a legitimate American centive to deliver American projects ing the terms of access. Washington
awkward. In February, both govern- debate here. No country is obliged from India. In other words, a policy is asking India to open its markets
ments announced a framework that to maintain an immigration system designed to keep jobs in America while simultaneously tightening ac-
explicitly envisaged deeper technolo- simply because foreign companies could encourage more work to move cess to the American labour market
gy trade, stronger supply chains and have built business models around it. offshore. for Indians.
greater cooperation in areas ranging But there is also a danger in treating For India, however, this should That may be politically attractive
from semiconductors to data-centre Indian technology workers primarily not be viewed merely as an opportu- in America. But if the trade deal re-
equipment. Yet, at the same time, as a threat rather than as part of the nity to celebrate the resilience of its mains stuck and technology mobility
Washington is making it progressive- ecosystem that has made American IT industry. The country’s technolo- continues to shrink, both sides will
ly harder for one of India’s most suc- technology globally competitive. gy sector has benefited enormously eventually have to ask whether an
cessful exports — skilled technology For Indian IT companies, the from access to the US market, cap- economic relationship built on inter-
professionals — to enter and build immediate response is likely to be ac- ital, clients and talent networks. A dependence can survive when one
careers in the American economy. celeration rather than retreat. They prolonged squeeze could affect the partner increasingly insists on setting
The Trump administration’s ar- have already been reducing depen- traditional offshore model and force the terms.

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