AI could unlock over $490 billion in economic value for India's MSMEs, while improving business profitability by 30-35%, according to a Google-India SME Forum report.
Nearly 60% of surveyed MSMEs reported double-digit revenue growth, while 66% expanded market access and 58% improved customer acquisition through digital tools.
Agentic AI and automation could reduce operating costs by 20-30%, improve productivity by 15-20%, and increase customer conversions by 23%, the report said.
The Trump administration is drafting fresh immigration regulations that could restrict the H-1B visa system, modify international student guidelines and terminate automatic work permit renewals.
The regulatory agendas of the US Departments of Homeland Security (DHS), Labour (DOL) and State (DOS) outline these upcoming priorities. The changes will significantly impact Indian professionals, international students and H-4 visa holders, The Economic Times reported.
1 June 2026
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The authorities will issue some measures as final rules. Other changes will begin as proposals requiring public consultation before taking effect.
Higher Costs for Employers
The administration will soon increase costs for employers relying heavily on H-1B and L-1 workers. The initial changes are expected this month.
Firms employing over 50 staff in the US—where H-1B or L-1 visa holders constitute more than 50% of the workforce—face new financial burdens. These companies must pay an additional $4,000 for H-1B extension petitions and $4,500 for L-1 extensions. Currently, these fees only apply to initial stays or when changing employers.
A separate August proposal aims to tighten H-1B rules for third-party client placements, a model frequently utilised by Indian IT and consulting firms, Kably reported in the Times of India.
Employers must soon prove genuine employer-employee relationships and verify specialty occupation duties at client sites. Companies will need to maintain detailed assignment records. Firms with past violations will face heightened scrutiny. Because this is a proposed rule, it will undergo public consultation before any final decision is made.
Wage and Green Cards
The DOL is drafting a proposal to increase the standard wage requirements for H-1B and employment-linked green card petitions. This move will raise minimum salary thresholds for entry-level positions, making it costlier for employers to sponsor foreign professionals.
The department also plans to update the PERM labour certification process, which serves as the initial step for employer-sponsored green card applications. The revised rules will alter recruitment standards.
The proposal aims to tighten regulations regarding US worker layoffs. It will also strengthen anti-discrimination compliance.
Student Visa Rule Changes
The DHS is expected to issue a final rule this month replacing the "duration of status" system. The administration will mandate fixed-period student visas. Students must apply for formal extensions to continue their studies.
A separate proposal in early 2027 will introduce changes to the Optional Practical Training (OPT) programme, the Times of India reported.
India is the largest source of international students in the US. Around 3.6 lakh Indian students enrolled during the 2024-25 academic year, the Open Doors Report stated.
This figure accounts for nearly 31% of all international students in the country. The proposed visa modifications could raise expenses and generate more uncertainty for students requiring longer academic stays.
H-4 Work Permit Gaps
The DHS is expected to finalise a rule later this month ending the automatic extension of Employment Authorisation Documents (EADs).
The policy shift could impact roughly 1 lakh Indian spouses holding H-4 visas, the Times of India reported.
H-4 EAD holders can only submit renewal applications a maximum of 180 days prior to expiry. Processing at the US Citizenship and Immigration Services (USCIS) often takes considerably longer. Consequently, many applicants face potential employment gaps while waiting for renewed work authorisation.
