Telangana Sees Long-Term IT Opportunities Amid H-1B Visa Fee Hike
While the H-1B visa fee hike may pose short-term challenges, the Telangana government is optimistic about the long-term benefits for the state's IT sector. Chief Minister A. Revanth Reddy and IT Minister D. Sridhar Babu are preparing to leverage this opportunity by attracting global investments and expanding Hyderabad's role in the global technology landscape.
H1b VisaIt SectorTelanganaHyderabadGlobal Capability CentresReal EstateSep 21, 2025
Chief Minister A. Revanth Reddy and IT Minister D. Sridhar Babu are planning to convene a meeting with leading IT companies 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, thanks to its robust IT infrastructure, Global Capability Centres (GCCs), startups, and data centres.
The government’s optimism is grounded in recent investment trends. At the World Economic Forum in Davos, Telangana signed MoUs worth ₹40,832 crore in 2024, with IT, GCC, and data centre projects accounting 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 anticipates even greater commitments at the next Davos summit if the current US visa policies persist.
However, the government also recognizes the immediate challenges. 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 bolstered the state’s economy, could 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 the impact of the H-1B fee hike on Telangana, Sridhar Babu acknowledged that the decision carries “immediate pain but long-term promise.” While job losses are 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. 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. He 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 aims 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 policies, 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.
Frequently Asked Questions
What is the impact of the H-1B visa fee hike on Telangana's IT sector?
The H-1B visa fee hike may cause short-term job losses and a decline in remittances, but it also presents a long-term opportunity for global technology investments in Telangana.
What is Telangana's strategy to attract global IT investments?
Telangana plans to offer state-of-the-art facilities, support global firms, and evolve from Global Capability Centres (GCCs) to Global Value Centres (GVCs) for high-value innovation.
How many H-1B visa holders are from Telangana and Andhra Pradesh?
Together, Telangana and Andhra Pradesh contribute about 20 percent of all H-1B visa holders, with Indians making up nearly 73 per cent of the total.
What is the current investment trend in Telangana's IT sector?
In 2024, Telangana signed MoUs worth ₹40,832 crore, with IT, GCC, and data centre projects accounting for ₹15,200 crore. In 2025, MoUs jumped to ₹1,78,950 crore, with the IT and data centre sector comprising ₹1,04,500 crore.
What is the government's plan to address the immediate challenges of the H-1B visa fee hike?
The Telangana government plans to write to Prime Minister Narendra Modi to urge diplomatic intervention with Washington to ease the financial burden on Indian firms and secure temporary relief for workers.
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