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Bloomberg published an article on November 11 titled "Trump's Crackdown on H-1B Visas Will Accelerate Wall Street's Expansion in India." The article argues that in response to the Trump administration's tightening of H-1B visas and other immigration policies, Wall Street may further increase its local hiring in India, highlighting that Trump's policies are not helping to bring jobs back to the United States. The authors of this article are Saikat Das, Siddhi Nayak, Ruchi Bhatia, and Chanyaporn Chanjaroen, who are editors at Bloomberg.
In recent years, "Global Capability Centers (GCCs)" have gradually grown in India. In the service outsourcing industry, India is no longer just taking on simple white-collar jobs but is now providing quantitative analysts, accountants, technology, consulting, and management talent. The average annual salary for Indian engineering graduates is 300,000 to 800,000 rupees (3,384-9,021 USD), while Indian professionals in the US earn an annual salary of $60,000, and native American professionals earn up to $120,000 per year. The cost advantage of Indian labor has driven US financial giants to continue increasing their hiring in India. The top six Wall Street financial giants, including J.P. Morgan, Goldman Sachs, and KKR Asset Management, have already employed more than 150,000 people in Bangalore and Mumbai. This is expected to push the value of India's GCCs to exceed $100 billion by 2030.
The Trump administration's tightening of H-1B visa policies has accelerated the shift of US companies toward India's GCCs. On September 19, Trump increased the application fee for H-1B visas to $100,000. This move is generally interpreted as aimed at protecting American jobs. However, this policy has also pushed US companies to accelerate their hiring in India. On one hand, several US financial companies have stated that they will speed up their expansion in India, shifting many Indian talents originally planned to be hired in the US to be hired locally. On the other hand, with the sharp increase in visa fees and the rise in local income in India, the motivation for Indian talents to go to the US has weakened. However, US financial companies are also wary of the Trump administration's concerns about job losses and dare not openly expand their hiring in India.
India's GCCs have already occupied a dominant position in the global service industry, taking on many advanced functions and pushing low-end service sector jobs to countries like the Philippines. The financial industries in the US and Europe are increasingly relying on India's GCCs to perform risk assessment, consulting, accounting, and technical functions. Some US companies are conducting innovation work through their GCCs in India, including Goldman Sachs developing specialized systems for financial delivery and generative AI process optimization in India. Analysts point out that these technological operations have taken up an important ecological position in the global service industry.
The Modi government's supportive policies have further strengthened the competitive advantages of India's GCCs. Currently, both the federal and state governments in India are competing to introduce policies to attract the GCCs industry, including tax incentives, policy subsidies, and expediting the approval process. GCCs are blooming across India, from major cities such as Gurgaon, Bangalore, Mumbai, and Hyderabad to smaller cities like Mysore and Thiruvananthapuram. Infrastructure development for GCCs is also receiving strong support, with over 9.29 million square meters (100 million square feet) built since 2021.
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