"Those Days Are Gone": Piyush Goyal Plays Down H-1B Visa Dependence At NDTV Profit Conclave

India no longer depends on H-1B visas for the growth of its IT services sector, Commerce and Industry Minister Piyush Goyal said on Saturday, signalling a shift in how Indian technology firms serve global markets.

Speaking at the NDTV Profit Conclave, Goyal was responding to a question on whether India had received any assurance from the United States on H-1B visas, given their importance for IT exports.

Goyal said the relevance of the visa programme had steadily declined even before the pandemic. He described how the H-1B system had turned into a lottery, forcing companies to apply for several visas in the hope of securing just a few.

"Those days are gone," the minister said, adding that the world had changed significantly after Covid-19.

He noted that since the pandemic, no company had approached him to seek talks with the US government for more H-1B visas. According to Goyal, businesses have realised that much of the work that was earlier done onsite in the US can now be carried out remotely from India.

The minister pointed to the sharp cost difference between the two countries, saying firms had to pay much higher salaries in the US due to its high cost of living.

"Much of the work that was earlier done on-site can now be done offshore, as seen during Covid. Instead of moving people to the United States and paying top salaries due to its high cost of living, companies are changing their approach. The per capita income in the US is around $90,000, compared with about $3000 in India, creating a huge cost gap that largely benefits the US economy," said Piyush Goyal. 

In contrast, outsourcing work to India's Global Capability Centres (GCCs) benefits both companies and the Indian economy.Goyal said India now hosts more than 1,800 GCCs, which create jobs, generate tax revenue, allow employees to stay with their families, and improve profitability for global firms.

The shift, he said, reflects a broader change in how global businesses operate in a post-pandemic world.