US PRESIDENT Donald Trump
last week announced a deal
with AstraZeneca that he said
would reduce drug prices in the
United States in exchange for
delaying new tariffs on the Brit
ish pharmaceutical company.
The agreement follows a
similar accord with Pfizer an
nounced last month. Under the
deal, AstraZeneca will offer
“Most Favored Nation” pricing
to Medicaid, meaning it will
match the lowest prices
charged for its medicines in
other high-income countries.
Officials said the company
also agreed to join a new web
site called TrumpRx, which
will allow Americans to buy
drugs directly at reduced pric
es. Mehmet Oz, head of the
Centers for Medicare and Med
icaid Services, said AstraZene
ca would provide heavily dis
counted drugs for lung disease
as part of the arrangement.
In return, the Trump admin
istration will delay new tariffs
on AstraZeneca for three years.
The company had earlier
pledged to invest $50 billion in
the United States amid con
cerns over potential trade mea
sures. “Most of our products
are locally manufactured, but
we need to transfer the remain
ing part to this country,” Astra
Zeneca CEO Pascal Soriot said
at a White House event with
Trump and other officials.
The announcement comes
after Trump’s September
30 agreement with Pfizer,
which also included three-year
tariff relief.
Drug prices remain a major
political issue in the United
States, though the impact of
recent measures is still uncer
tain. Shares of Pfizer and
other pharmaceutical firms
rose after last month’s an
nouncement, suggesting inves
tors expect limited profit ef
fects. “From a company per
spective, you have more visibil
ity going forward,” said CFRA
Research analyst Sel Hardy. He
added that it was too early to
gauge the overall impact of the
administration’s policies, which
include upcoming negotiations
on 15 major drugs in November
under a 2022 law. (With inputs
from agencies)
Trump delays AstraZeneca tariffs in exchange for cheaper drugs
US PRESIDENT Donald Trump’s decision to sharply
increase H-1B visa fees is prompting American com
panies to consider moving more high-value work to
India. Economists and industry experts say the
move could speed up the growth of global capability
centers (GCCs) that manage operations such as fi
nance, technology, and research and development.
India is home to about 1,700 GCCs, more than half the
global total. These centers, which started as back-office
support units, now play a major role in product design,
innovation, and other specialized areas, including auto
motive design and pharmaceutical research.
Rising visa costs and tightening rules are forcing US
firms to review their hiring and labor strategies. Many
are now turning to India-based GCCs, which combine
global talent with local leadership and can handle criti
cal business functions.
“GCCs are uniquely positioned for this moment. They
serve as a ready in-house engine,” said Rohan Lobo,
partner and GCC industry leader at Deloitte India. He
said several US firms are already reassessing workforce
plans. “Plans are already underway,” he added, pointing
to increased activity in financial services and technology
sectors, especially among companies involved in US
federal contracts.
Lobo said he expected GCCs in India to “take on more
strategic, innovation-led mandates” over time.
Earlier this month, Trump raised the cost of new H-1B
visa applications to $100,000, from the earlier range of
$2,000 to $5,000. The move adds pressure on American
companies that depend on foreign skilled workers to fill
key roles.
Separately, US senators this week reintroduced a bill
to tighten H-1B and L-1 visa programs, saying it aims to
close loopholes and prevent misuse by large employers.
If these curbs remain, industry experts say more US
firms will shift advanced work related to artificial intel
ligence, product development, cybersecurity, and ana
lytics to their India-based GCCs. Many companies prefer
keeping such work in-house through GCCs rather than
outsourcing it to third-party vendors.
“There is a sense of urgency,” said Lalit Ahuja, found
er and CEO of ANSR, which has helped companies such
as FedEx, Bristol-Myers Squibb, Target, and Lowe’s set
up their GCCs in India.
Firms revisit India plans
Ramkumar Ramamoorthy, former managing director of
Cognizant India, said the new visa rules could trigger
“extreme offshoring” in some cases. He noted that the
COVID-19 pandemic had already shown that critical
technology work could be done from anywhere.
US government data shows that Amazon, Microsoft,
Apple, Google parent Alphabet, JPMorgan Chase, and
Walmart are among the largest sponsors of H-1B visas. All
of them have major operations in India but declined to
comment because of the political sensitivity of the issue.
“Either more roles will move to India, or corporations
will near-shore them to Mexico or Colombia. Canada
could also take advantage,” said the India head of a retail
GCC. Even before the new fee hike and plans for a selec
tion process favoring higher-paid roles, India was pro
jected to host GCCs for more than 2,200 companies by
2030, with a total market size nearing $100 billion. “This
whole ‘gold rush’ will only get accelerated,” Ahuja said.
Cautious outlook amid policy risks
Some companies remain cautious and are adopting a
“wait and watch” approach.
They are concerned about the proposed HIRE Act,
which would impose a 25 per cent tax on US companies
outsourcing work overseas. The measure could disrupt
India’s services exports and alter outsourcing strategies.
“For now, we are observing and studying, and being
ready for outcomes,” said the India head of a US drug
maker’s GCC.
Trade tensions between India and the United States
have extended from goods to services. Visa restrictions
and the proposed outsourcing tax could affect India’s
cost advantage and slow the flow of cross-border ser
vices. India’s $283 billion information technology indus
try, which contributes nearly 8 per cent of the country’s
GDP, may feel some impact. However, growing demand
for GCC services could offset part of the pressure.
“Lost revenues from H-1B visa reliant businesses
could be somewhat supplanted by higher services ex
ports through GCCs, as US-based firms look to bypass
immigration restrictions to outsource talent,” Nomura
analysts said in a research note last week. (With inputs
from Reuters)
RISING COSTS RESHAPE GLOBAL HIRING AND STRENGTHEN INNOVATION NETWORKS
Business
www.indiaweekly.biz • October 2025
15
Visa curbs spur US firms
to build India centres
AN EMPLOYEE of a US-
based company said he
and several others in In
dia were abruptly fired
during a four-minute
online meeting, sparking
outrage on social media.
The worker shared his
experience on Reddit,
saying he received a
sudden calendar invite
for a mandatory meet
ing with the company’s
COO. “He joined at 11:01,
disabled everyone’s
cameras and mics, and
casually let us know they
had ‘made the difficult
decision of letting most
of their Indian workforce
go,’” the employee
wrote. The COO said the
move was due to inter
nal restructuring and not
performance issues.
According to the post,
affected employees
were told they would re
ceive follow-up emails
with details. The worker
said the announcement
ended without any op
portunity for questions,
leaving staff “shocked
and unprepared.” He
added that October’s
salary would be paid at
the end of the month
and unused leave would
be encashed.
The post drew wide
reactions online, with us
ers criticizing the “brutal”
handling of the layoffs
and offering words of
support and job refer
rals. Several shared sim
ilar experiences and
called for stronger labor
protections for re
mote employees.
The layoffs come amid
growing debate over US
visa policy changes and
rising concerns about
global job security.
Indian staff
fired over
video call
TALENT SHIFT: Employees
of Indian IT services
exporter LTIMindtree work
inside its office in Bengaluru
© Reuters
© iStock
PHARMA PACT: US president Donald Trump speaks
at the White House during an event announcing a
deal to lower drug prices, attended by senior
officials and AstraZeneca CEO Pascal Soriot
© Reuters