Trump’s H1B Executive Order: A Strategic Boon for Foreign Companies to Establish Operations in India

The landscape for international business has dramatically shifted. With recent changes to H1B visa policies introducing a $100,000 annual fee, smart foreign companies are discovering that the path to accessing world-class talent doesn’t run through visa applications—it runs through India.

What we’re witnessing isn’t just a trend; it’s a fundamental reimagining of how global businesses operate. According to official government data, India has achieved a remarkable milestone with gross foreign direct investment inflows reaching $1 trillion since April 2000. The Department for Promotion of Industry and Internal Trade reports that FDI inflows have increased approximately 20 times from FY 2001 to FY 2025, demonstrating unprecedented growth momentum.

The Numbers Tell a Compelling Story

India’s FDI performance has been extraordinary. In FY 2024-25, the country recorded $81.04 billion in FDI inflows, marking a 14% increase from the previous year. Over the last eleven financial years (2014-25), India attracted FDI worth $748.78 billion, reflecting a 143% increase over the previous eleven years. This constitutes nearly 70% of the total $1,072.36 billion in FDI received over the past 25 years.

The services sector emerged as the top recipient of FDI equity in FY 2024-25, attracting 19% of total inflows, followed by computer software and hardware at 16%. Manufacturing FDI also grew by 18% in FY 2024-25, reaching $19.04 billion compared to $16.12 billion in the previous year.

India’s global competitiveness has improved significantly, with its ranking in the World Competitive Index 2024 jumping to 40th position from 43rd in 2021. The country secured the 40th position out of 132 economies in the Global Innovation Index 2023, a remarkable improvement from its 81st position in 2015.

Strategic Locations for Global Operations

Maharashtra: The Investment Leader

Maharashtra continues to dominate India’s FDI landscape, accounting for 39% of total FDI equity inflows in FY 2024-25. The state recorded inflows worth $16,651 million during FY 2025 until December 2024, representing 31% of India’s total FDI equity inflows. Maharashtra boasts dedicated sectoral facilities and the highest employable workforce at 70%.

Karnataka: The Technology Powerhouse

Karnataka attracted $4,496 million in FDI equity inflows during FY 2025 until December 2024, accounting for 20% of India’s FDI equity inflow. The state’s thriving technology and startup ecosystem, combined with robust economic fundamentals, makes it a global investment hub for IT, services, and telecommunications sectors.

Bengaluru continues to lead as India’s technology capital, offering the deepest talent pool and most established ecosystem for IT and engineering operations.

Hyderabad has emerged as a powerhouse for software development, analytics, and emerging technologies, with state-of-the-art infrastructure and supportive local policies.

Mumbai remains the financial services hub, ideal for companies in banking, insurance, and financial technology.

Pune excels in manufacturing, engineering, and automotive sectors, with proximity to major industrial corridors.

Chennai offers particular strength in engineering and R&D operations, with excellent connectivity and industrial infrastructure.

Nagpur: The Emerging Tech Hub

Nagpur is rapidly emerging as one of India’s most promising destinations for Global Capability Centers. The city’s district collector has actively pitched Nagpur as a future IT hub, with the first GCC already on track at MIHAN-SEZ. C&R Software, a subsidiary of Canada-based Constellation Software Inc., has already established its Global Capability Centre in Nagpur, marking the city’s entry onto the global tech map.

In May 2025, Maharashtra Chief Minister Devendra Fadnavis granted in-principle approval for the ‘New Nagpur’ project, a high-tech city initiative designed to position Nagpur alongside established tech centers like Hyderabad and Bengaluru. The project envisions creating a major hub for startups, MSMEs, technology firms, and international service providers.

Nagpur offers unique advantages including MIHAN-SEZ’s competitive benefits with GST, stamp duty, and excise exemptions, along with no minimum import-export obligations. The city’s central location in India makes it ideal for logistics and technology operations, while recent infrastructure investments including the approved Hi-Tech Media Park worth Rs 3,000 crore further enhance its appeal.

Companies like Corpay Technologies have already recognized Nagpur’s potential, establishing their Global Capacity Centre and positioning the city as a formidable fintech powerhouse. With government commitments to file clearances within 7-10 days and strong support for decentralizing operations from Mumbai to Nagpur, the city represents an untapped opportunity for forward-thinking foreign companies.

The Infrastructure Advantage That Changes Everything

India’s business infrastructure has matured into something genuinely world-class. The government’s proactive policy framework allows 100% foreign ownership in most sectors under the automatic route, with nearly 90% of FDI inflows received through this streamlined process.

The regulatory environment has been continuously liberalized. Between 2014 and 2019, significant reforms included increased FDI caps in Defense, Insurance, and Pension sectors. From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.

The Talent Pool That Defines Tomorrow

India’s workforce advantage extends beyond numbers to quality and innovation capability. The country’s ranking as the 48th most innovative country among the top 50 nations demonstrates the caliber of its professional talent pool. The combination of technical expertise, English proficiency, and cultural alignment with Western business practices creates an unmatched foundation for global operations.

The Government Framework That Provides Confidence

India’s legal system has evolved to actively support foreign investment. The government has implemented transformative reforms across multiple sectors to liberalize FDI norms, with the number of source countries for FDI increasing from 89 in FY 2013-14 to 112 in FY 2024-25.

The Foreign Exchange Management Act provides clear guidelines for foreign exchange management, inter-company agreements, and operational funding. Companies must maintain statutory registers and comply with regular filing requirements, but the digital infrastructure supporting these obligations has advanced considerably.

The Professional Services Ecosystem

The complexity of establishing and maintaining operations in any foreign market demands local expertise. India’s professional services sector has evolved to meet this need comprehensively. Qualified Company Secretaries, legal professionals, and compliance experts understand both the regulatory requirements and the practical realities of international business operations.

When foreign companies work with established professional services firms, they gain access to insights that go beyond simple compliance. They receive strategic guidance on optimal corporate structures, tax planning, regulatory developments, and operational best practices. This support proves invaluable not just during the establishment phase, but throughout the ongoing operation of Indian subsidiaries.

The most successful foreign companies in India recognize that professional expertise isn’t just about meeting requirements—it’s about optimizing opportunities. The right advisors help companies navigate FDI regulations, establish efficient operational structures, and maintain compliance while maximizing the strategic and financial benefits of their Indian operations.

The Strategic Moment

The convergence of H1B visa changes, India’s infrastructure maturity, and the country’s talent pipeline creates an unprecedented opportunity. Companies that move decisively can establish operations in a market that offers immediate cost advantages and long-term strategic value.

India was the third-largest recipient of greenfield projects with 1,008 greenfield project announcements according to the World Investment Report 2023. The number of international project finance deals increased by 64%, making India the recipient of the second-largest number of international project finance deals.

Looking Forward

India’s trajectory toward becoming the world’s third-largest economy means that companies establishing operations today are positioning themselves within a rapidly growing domestic market while building global capabilities. The combination of talent depth, cost efficiency, regulatory support, and infrastructure quality creates a business environment that’s difficult to replicate elsewhere.

For foreign companies evaluating their next strategic move, the question isn’t whether India offers opportunities—it’s whether they can afford to miss them. The companies that recognize this moment and act decisively will find themselves with significant competitive advantages in the years ahead.

The path forward requires careful planning, professional guidance, and strategic thinking about corporate structure and compliance requirements. But for companies willing to make the commitment, India offers something rare in today’s business environment: a genuine strategic advantage that compounds over time.

The opportunity is clear. The infrastructure is ready. The talent is waiting. The question for forward-thinking companies is simple: when will you make your move?

Establishing operations in India requires expert guidance through regulatory requirements, corporate structuring, and ongoing compliance. Professional support ensures that companies can focus on building their business while maintaining full regulatory compliance and maximizing the strategic benefits of their Indian operations.

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