Will the H-1B visa rule impact upcoming placement season in engineering and management colleges?

H-1B Visa Alternatives: Countries Indian students can look forward to

For the past few years, major economies have been facing job scarcity, with many tightening visa rules to protect local workers or viewing international students largely as sources of tuition revenue — often sending them back without meaningful work opportunities. For those gearing up for the upcoming placement season in India, the stakes have never been higher.

Fewer international offers, limited impact

Ramgopal Rao, Group Vice Chancellor of BITS Pilani and former Director of Indian Institute of Technology (IIT) Delhi, described the effect as “more cascading than immediate.” He pointed out that international placements, even in leading institutes like IITs and Birla Institute of Technology and Science (BITS), Pilani, have historically accounted for only 5–10 per cent of offers. “With more returning H-1B holders and fewer people going abroad, the overall impact on India’s economy and on IT company revenues will be complex,” he said. The silver lining, however, may be an increase in outsourcing to India, creating fresh opportunities on home turf.

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V Kamakoti, Director of IIT Madras, echoes the view. “While there are fewer international offers for IIT students, most of these companies already have offices in India. Instead of spending a crore of rupees on an H-1B visa, they prefer hiring Indian talent to work locally. This shift will, in turn, strengthen the Indian ecosystem,” he said.

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While most IITs refrain from sharing placement data for the past two years, limited data suggests that while high packages were offered by tech giants like Google and Microsoft, they were less than 10 per cent of the total offers. Common regions offering international roles are the USA, UK, Japan, Netherlands, South Korea, Taiwan, Singapore, UAE, etc.

Table summarising total phase‑1 offers and international offers received by selected IITs.

Who will be most-affected with the US policies?

V Kamakoti opined that students, particularly those who travel to the US without fellowships, could be at a disadvantage under the new rules. “They often spend large sums — sometimes in crores — with the expectation of earning it back through employment. This category will be more affected than the Indian students studying here,” he said.

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Not just engineering, but top management college directors too feel that there will be little impact of the US policies on them. As per Prof Himanshu Rai, Director of IIM Indore, unlike the early-to-mid 2000s, when global opportunities were expanding, the current trend shows fewer chances abroad. Today, the “US dream” is no longer the main consideration for IIM students.

“Those with strong degrees and relevant experience can still qualify for opportunities abroad, often through the L1 visa route,” he said. The real challenge, according to him, lies with students from non-premier institutions, who may find it difficult to enter the US.

End of American dream or beginning of a new one?

As per the US Citizenship and Immigration Services Department, the number of eligible registrations for the 2025-26 financial year dropped to 3,43,981 from 470,342 in FY 2024-25. Therefore, the impact of H-1B changes is already visible in the data. “This sharp decline of 26.9 per cent shows US-bound offers were already slowing. This trend will continue as companies focus more on India-based work, near-shore teams, and local hires abroad. For students, especially from tier-2 and tier-3 campuses, overseas offers will shrink and competition will rise, making immediately deployable skills the most valuable,” said Neeti Sharma, CEO of HR firm TeamLease Digital.

For students, the question is not just about cost but also about exposure. Can the Indian market truly compete with Silicon Valley, which offers a distinctive innovation ecosystem? According to the Director of IIT Madras, India, too, is creating valuable opportunities. “Startups in particular are giving young graduates early access to cutting-edge technologies and deep technical work that they may not encounter for years in larger organisations. For instance, IIT Madras alone has incubated over 100 deep-tech startups in a single year, underscoring the strength of this growing ecosystem,” he said.

According to him, the H-1B shake-up marks a turning point and could redirect more students toward Europe and Asia, even as it simultaneously strengthens India’s own innovation landscape. “Indian talent remains crucial, and companies are expected to expand their operations here. The startup ecosystem, especially, is creating avenues for graduates to work on advanced technologies right at the beginning of their careers,” Kamakoti added.

Rai further emphasised that US visa policies are not the only disruptor. “AI has already reshaped jobs. Highly skilled roles are relatively safe, but repetitive coding work is increasingly automated,” he said. He added that the finance students are already setting their sights on destinations like the UK, Singapore, Hong Kong, and other emerging hubs in Africa and Asia.

Would this put pressure on India’s workforce?

While many Indians are disheartened by the recent US visa policies, students already in the US and graduating this year might now consider returning home. According to Neeti Sharma, the ripple effect on India’s workforce could be significant. “Fewer fresh H-1B departures and more returnees will add pressure on India’s mid-level tech workforce, while overseas roles will largely go to specialised talent. US revenues for IT firms may slow—large players will withstand this better than mid-tier ones. Sluggish placements could affect exports and remittances, but the rising demand for niche skills in India will also create new opportunities at home,” she explained.

On the question of entry-level hiring, Sharma was clear: freshers are likely to face greater pressure as visa demand slows and costs rise. “Companies will reserve sponsorships for mid-level or specialised roles. For campus hires, this means fewer US offers and more India or near-shore roles. Those with niche, job-ready skills will hold an edge over general profiles,” she added.

Meanwhile, European and some Asian countries are actively reducing visa barriers to attract skilled talent, and companies are expanding operations in regions with more favorable policies.

IIM Indore’s director Rai viewed that those who have worked in countries like the US for years are unlikely to return to India because of multiple factors like weather, infrastructure, etc. Such professionals would prefer growing hubs like Dubai and Singapore that are becoming attractive alternatives for global talent.

What should students aim for now?

For students eyeing US roles, experts advise that the best way is to upskill themselves. Himanshu Rai advises that, as geopolitical shifts and economic policies are beyond individual control, students should continuously upgrade their skills, adapt to change, and make the best use of emerging opportunities. “Rather than relying on lofty ideas like creating jobs, they should embrace the spirit of experimentation, follow their passion, and chart a career path that aligns with their strengths and interests,” he added.

Sharma too thinks that technology has made the global roles more competitive: “However, that’s a chance for students to stand out with skills in cloud, AI/ML, cybersecurity, data, and product engineering. What matters most is proof of ability through projects, internships, or open-source work. Alongside aiming for the US, explore Canada, Europe, and other markets. With an India-first plan and global outlook, students can unlock strong opportunities at home and abroad.“