**H-1B Changes to Have Little Effect on Indian Remittances: Barclays**
*By Akash Pandey | Sep 27, 2025 04:52 PM*
A recent research report by Barclays has estimated that the recent changes to the H-1B visa rules in the United States will have a minimal impact on remittances sent by overseas Indians. This analysis follows US President Donald Trump’s announcement of significant modifications to the H-1B visa program, including a one-time fee of $100,000 for new visas and a shift to a wage-based selection process.
**Key Changes to H-1B Visa Rules**
The new H-1B visa system replaces the traditional lottery-based selection with a wage-based mechanism, prioritizing high-skilled and high-paid applicants by providing them multiple entries into the selection pool. While these rules could potentially lead to job losses and affect livelihoods, Barclays’ report estimates that the resultant impact on remittances is unlikely to exceed $5 billion out of the total $83 billion sent by overseas Indians.
**Market Dynamics and Emerging Trends**
Barclays’ report also highlights the rise of global capability centers (GCCs), many of which are US-headquartered firms. These GCCs are expected to continue supporting India’s services exports rather than hindering them. Despite the H-1B visa adjustments, India remains a dominant player in the IT and IT-enabled services sector, with 62% of sectoral exports directed towards the US market.
**Broader Export Landscape and Talent Movement**
The report further notes that the growth of India’s IT services industry has not been solely dependent on US employment, implying that the recent H-1B overhaul will have a limited effect on the country’s overall services export landscape.
Additionally, countries like Germany and Canada are increasingly looking to attract highly skilled Indian talent. This emerging trend may lead to a redistribution of Indian professionals globally in the medium term, further diversifying the international opportunities available to India’s workforce.
—
Overall, despite the policy changes, Barclays suggests that the impact on Indian remittances and the broader IT services sector will be relatively contained, with India continuing to maintain its strong position in the global talent and services market.
https://www.newsbytesapp.com/news/business/us-h-1b-changes-to-have-minor-impact-on-indian-remittances/story