Telangana Sees IT Opportunity in H-1B Visa Hike

Chief Minister A. Revanth Reddy and IT minister D. Sridhar Babu are preparing to convene a meeting with leading IT companies here to explore possibilities for expanding their footprint in the city and in the proposed Bharat Future City. The government believes that Hyderabad is uniquely positioned to absorb potential shifts in global operations, owing to its strong base in IT, Global Capability Centres (GCCs), startups, and data centres.

The government’s optimism is rooted in investment trends over the past two years. At the World Economic Forum in Davos, Telangana signed MoUs worth ₹40,832 crore in 2024, of which IT, GCC, and data centre projects accounted for ₹15,200 crore, or 37 per cent. In 2025, MoUs jumped to ₹1,78,950 crore, with the IT and data centre sector comprising ₹1,04,500 crore, or 58 per cent. The government expects even greater commitments at the next Davos summit if the current US visa policies persist.
At the same time, the government fears that the visa fee hike may cause disruption for thousands of IT engineers from Telangana employed in the US. Remittances from this workforce, which have long boosted the state’s economy, could see a decline if renewals become financially burdensome for employers. A slowdown in job placements abroad may also affect real estate activity in IT corridors on the city’s outskirts.
When asked about H-1B fee hike impact on Telangana, Sridhar Babu said the decision carries “immediate pain but long-term promise.” He explained that while job losses remain a concern in the short term, the new US policy could prompt global firms to relocate or expand operations in Hyderabad. “We will extend state-of-the-art facilities, offer every support, and make Hyderabad the natural choice for IT expansion,” he said.
The minister highlighted the scale of the challenge by pointing to leading Indian IT firms that rely heavily on H1B visas. He said Infosys currently has around 1.5 lakh staff in the US on such visas, TCS employs 1.21 lakh, Wipro 60,000, HCL Tech 57,000, and Tech Mahindra 22,000. Many smaller Telangana-based firms also depend on H1B visas for their US operations. “Several employees need renewals every month. If companies step back due to higher visa costs, thousands of professionals could be at risk,” he said.

Sridhar Babu noted that Indians make up nearly 73 per cent of all H1B visa holders, with Telangana and Andhra Pradesh together contributing about 20 percent of this share.
Sridhar Babu disclosed that Chief Minister Revanth Reddy planned to write to Prime Minister Narendra Modi urging immediate diplomatic intervention with Washington to ease the financial burden on Indian firms and secure temporary relief for workers. “We will appeal to the Centre to ensure that Indian IT talent is not unfairly penalised by sudden policy shifts,” he said.
The minister also elaborated on Telangana’s broader strategy. The state leads the GCC space, with Hyderabad attracting more such centres than any other Indian city in recent years. Hyderabad now hosts over 355 GCCs, with 27 added in 2024 alone. The state is now aiming to evolve from GCCs to Global Value Centres (GVCs), which would shift the city’s role from outsourcing to value creation, product development, and intellectual property generation. “We want Hyderabad to move from back office to front office,” Sridhar Babu said.
Citing statistics, the minister noted that of the $600 billion global outsourcing market, Telangana’s exports contribute $32 billion, while only 25 per cent of Fortune 500 companies currently have a presence here. The global artificial intelligence market alone is worth $2 trillion, largely untapped by local players. “With new pollicies, we want to capture a bigger slice of emerging markets by transforming into a hub for high-value innovation,” he said.
Industry observers also see an opportunity. Hyderabad has emerged as India’s second-largest GCC office market, according to Knight Frank, and is expected to capture 35-40 per cent of upcoming GCC investments directed to India. With tightening data regulations worldwide, firms are increasingly dependent on secure, well-managed offshore centres — an area where Hyderabad is steadily gaining recognition.
The state government insists that it will act swiftly to mitigate short-term disruptions while leveraging long-term advantages. “Hyderabad offers infrastructure, talent, and the ability to scale. The US policy may slow our engineers today, but tomorrow it could accelerate Telangana’s rise as a global technology hub,” Sridhar Babu said.