US Banks to Lean on India Hubs After Trump Imposes Visa Fees

Core Insights - Wall Street banks are expected to increase reliance on Indian business support centers due to new H-1B visa fees imposed by the Trump administration [1][3] Group 1: Impact of H-1B Visa Changes - The new $100,000 fees on H-1B visa applications may lead banks to deepen their presence in Indian tech hubs like Mumbai, Bengaluru, and Hyderabad, which already employ over 1.9 million people [3][4] - Indian-born workers constituted 72.3% of all H-1B beneficiaries in the US fiscal year ending September 2023, highlighting the significance of this visa program for the tech and finance sectors [4] Group 2: Growth of Global Capability Centers (GCCs) - The GCC market has reached a value of $64 billion, with an annual growth rate of approximately 9.8% projected from 2019 to 2024, and is expected to grow to $110 billion by 2030 [5] - The number of GCCs is anticipated to increase from 1,700 to as many as 2,500 by 2030, indicating a robust expansion in this sector [5] Group 3: Employment Trends in the Banking Sector - Major US banks like Citigroup, Bank of America, and JPMorgan Chase are significant employers in India, with Citigroup employing around 33,000 staff, Bank of America over 27,000, and JPMorgan 10,000 [6] - The trend of hiring more staff abroad in response to visa restrictions is supported by a study indicating that globalized companies tend to hire one employee abroad for every visa rejection [7] Group 4: Strategic Adjustments and Future Outlook - Banks are likely to recalibrate their strategies for GCCs, potentially adding new job functions in India, but will wait for more clarity on evolving immigration policies [7] - The new H-1B restrictions are expected to accelerate India's role as a backbone for global capability centers, driving critical business and technology functions [9]