**H-1B Changes to Have Little Effect on Indian Remittances: Barclays**
*By Akash Pandey | September 27, 2025, 04:52 PM*
A recent research report by Barclays has estimated that the changes announced to the H-1B visa program in the US will have a minimal impact on remittances sent by overseas Indians.
### Overview of H-1B Visa Rule Changes
US President Donald Trump has introduced significant changes to the H-1B visa program, including the implementation of a one-time fee of $100,000 for new visas and a shift from the traditional lottery-based selection to a wage-based selection process. This new system allows high-skilled and high-paid applicants to have multiple entries in the selection pool, favoring higher wages.
### Impact on Remittances Expected to Be Limited
According to the Barclays report, while these changes might lead to job losses and affect livelihoods for some, the overall effect on remittance flows from Indians abroad is expected to be limited. The report estimates that remittance losses due to these changes are unlikely to exceed $5 billion, compared to the total $83 billion in remittances sent to India.
### Market Dynamics and Emerging Trends
The report also highlights the growing role of Global Capability Centers (GCCs), many of which are subsidiaries of US-headquartered firms. These centers are projected to continue supporting—and potentially boosting—India’s services exports, rather than hindering them.
Despite the new H-1B visa rules, India remains a dominant force in the IT and IT-enabled services sector, with approximately 62% of sectoral exports directed to the United States.
### Broader Export and Talent Movement Outlook
Barclays emphasizes that the expansion of India’s IT services industry has not been primarily dependent on US employment alone. This suggests that the overhaul of the H-1B visa program is unlikely to drastically alter India’s overall services export landscape in the near term.
The report also notes that countries like Canada and Germany are increasingly seeking to attract high-skilled Indian talent, which may lead to a redistribution of skilled Indian professionals globally over the medium term.
—
In summary, while the US H-1B visa reforms introduce new challenges, their impact on Indian remittances and the broader IT export sector is expected to be limited, supported by evolving global market dynamics and alternative international opportunities for Indian talent.
https://www.newsbytesapp.com/news/business/us-h-1b-changes-to-have-minor-impact-on-indian-remittances/story