New Delhi, Dec 24 (NationPress) The recent modifications regarding the wage-weighted selection mechanism for H-1B visas proposed by the U.S. Department of Homeland Security signify a major shift from the traditional, impartial lottery system, raising significant legal, economic, and operational concerns, as highlighted in a statement from Nasscom released on Wednesday.

The leading trade organization for India’s IT software sector noted that although the intention behind these proposed changes—aimed at enhancing high-skill employment, preventing misuse, and safeguarding U.S. wages—is comprehensible, a transparent and reliable visa framework is crucial to uphold the robustness of the U.S. technology ecosystem.

By assigning various selection entries based on Occupational and Employment Wage Statistics levels, this framework risks moving beyond the statutory emphasis on “specialty occupation” towards wage ranking, which could lead to regional and occupational disparities.

Wage levels differ significantly across locations and roles, and a weighted model could unfairly disadvantage small and mid-sized enterprises, startups, research institutions, and university-affiliated employers that operate with moderate yet market-appropriate wage structures, according to the statement.

While H-1B professionals make up a minor portion of the overall U.S. workforce supported by Nasscom member companies, they are pivotal in driving innovation, productivity, and job creation within the digital economy, the statement emphasized.

H-1B petitions at Level I and Level II wage bands often correspond to entry-level positions for graduates from U.S. universities in fields like science, engineering, and computing. These roles are essential to the STEM talent pipeline, allowing early-career professionals to gain industry experience and advance to mid- and senior-level innovation roles over time.

According to Nasscom, implementing a weighted system could weaken entry-level opportunities, thereby jeopardizing the future talent pool and dissuading international students from seeking advanced education in the United States.

This would counteract the nation’s objectives of enhancing competitiveness, fostering innovation, and supporting higher education. Furthermore, an abrupt transition to a wage-weighted model would introduce uncertainty, increase compliance complexity, and disrupt long-standing workforce planning, especially for smaller and mid-sized companies that synchronize recruitment with academic schedules, client delivery timelines, and product launch cycles.

Collectively, Nasscom member companies support over 1.6 million skilled jobs in the United States, contributing $198 billion to the U.S. GDP—an impact surpassing that of more than 20 state economies.

With more than 264,500 employees based in the U.S. and a presence in over 25 major American communities, Nasscom companies play a vital role in bolstering both established and emerging technology hubs.

Interestingly, over two-thirds of these jobs are situated outside of Silicon Valley and New York, promoting inclusive growth in regions like Texas, North Carolina, Ohio, and Illinois, as noted in the statement.

Any structural reform must maintain predictability, fairness, and alignment with statutory intent. Should a wage-weighted approach be adopted, a phased implementation with adequate lead time would be crucial.

Postponing implementation until the FY 2028 lottery cycle would allow employers the necessary time to adapt processes, ensure compliance, and retain confidence in the stability of the U.S. talent and investment landscape, the statement suggested.

A joint letter from U.S. congressional leaders, dated October 30, 2025, directed to the President, also emphasizes that Indian nationals, who constitute the largest demographic of H-1B recipients, are integral to U.S. leadership in information technology and artificial intelligence. America must persist in attracting the world’s finest talent to sustain our innovation ecosystem, enhance the defense industrial base, and maintain our long-term competitive advantage, as reiterated by Nasscom.

For India, the country of origin for 71 percent of H-1B holders last year, attracting this talent also strengthens our strategic partnership with a vital democratic ally in the Indo-Pacific.

A balanced, consultative approach is essential to ensure that reforms bolster rather than inadvertently undermine the innovation advantage and global competitiveness of the United States.

The H-1B program transcends merely addressing labor needs; it is about securing U.S. leadership in the industries that will define global power in the 21st century, the statement concluded.