Hyderabad: Andhra Pradesh IT Minister Nara Lokesh has stated that the H-1B visa crisis presents a significant opportunity for India to reverse brain drain and bolster its domestic technology sector. Lokesh's comments come in the wake of recent policy changes in the United States that have made it more difficult and expensive for Indian professionals to obtain H-1B visas.

The H-1B visa is a non-immigrant visa that allows U.S. companies to employ foreign workers in specialized occupations that require theoretical or technical expertise. It is widely used by Indian IT professionals seeking employment opportunities in the United States. India remains the largest beneficiary of H-1B visas, accounting for 71 percent of approved applications in 2024.

However, recent measures, including a steep hike in H-1B visa fees from US$5,000 to US$100,000 annually, are expected to deter many U.S. companies from employing Indian professionals. This increase may deter companies from sponsoring employees, potentially leading to a shift towards L-1 visas, though that route also faces scrutiny. Experts also foresee job exits from the US and growing uncertainty among H-1B holders.

Nara Lokesh believes that these challenges present an opportunity for India to attract skilled professionals back to the country and strengthen its own technology ecosystem. He has emphasized Andhra Pradesh's commitment to fostering IT growth and attracting investments in the state. He stated that the state is presenting amazing opportunities back home and that many global capability centers are planning to announce investments in their IT capital, Visakhapatnam.

Several industry experts and officials echo this sentiment, suggesting that the H-1B visa changes could be a game-changer for India. Special Chief Secretary, Investment and Industry (I&I) Cell, Jayesh Ranjan, stated that more skilled professionals may now choose to stay or return to India, which will fuel domestic innovation, startups and economic growth, and help transform India into a global technology hub. This reverse brain drain will strengthen economic opportunities, competitive wages and broader reforms.

The potential reverse brain drain could particularly benefit India's burgeoning startup ecosystem, especially in fields like artificial intelligence (AI) and deep tech. With a growing pool of talent and increasing investment in these areas, India could accelerate its transition from an outsourcing hub to a product innovation center. Laina Emmanuel, cofounder of BrainSight AI, said her firm has seen more interest from post-doctoral researchers and PhD graduates in the US and is hopeful that they will get more applications from Indians looking to return.

While the H-1B visa policy changes may pose some short-term challenges for the Indian IT sector, many believe that they ultimately present a valuable opportunity for India to harness its talent, strengthen its economy, and emerge as a global technology leader. Some experts, however, believe the measure may be temporary and expressed confidence that it would not have a long-term effect on India's IT sector.