Wall Street Speeds Up India Expansion

Summary

Big Take: Wall Street Speeds Up India Expansion

Podcast: Big Take by Bloomberg & iHeartPodcasts
Episode Date: November 11, 2025
Host: David Gura
Main Guest & Reporter: Sadi Nayak (Bloomberg Mumbai finance reporter)
Theme: How Wall Street banks are accelerating their expansion in India and shifting higher-skilled roles there, driven by domestic growth and US policy changes.

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Episode Overview

This episode explores the transformation of India’s role in global finance, moving far beyond its origins as a call center hub to become an essential center for highly skilled jobs in the world’s largest financial firms. It delves into how new US immigration policies—specifically, a dramatic increase in the H1B visa fee by President Trump—are speeding up this shift. The conversation features detailed insights from Bloomberg finance reporter Sadi Nayak, who tracks Wall Street’s growing presence in India, and includes perspectives from senior banking executives.

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Key Discussion Points & Insights

1. India’s Evolving Role in Global Finance

• Initial “Call Center” Phase:
  • In the late 90s/early 2000s, India’s main financial services jobs were low-skilled, often call center roles supporting US customers.
    • “[T]hese firms…operations in India were largely to address grievances of customers or initiate sales through phone calls.” — Sadi Nayak [03:41]
• Shift Toward High-Skilled Work:
  • Now, Indian offices are central to global financial operations, focusing on core tasks like financial analysis, software engineering, and risk management.
    • Example: Goldman Sachs’ Bangalore office grew from 300 mostly support staff (2004) to over 8,000 employees doing high-level work by 2025.
      • “Those workers do everything from core financial analysis to risk management. The kind of jobs that used to be done in US cities.” — David Gura [04:00]
• Global Capability Centers (GCCs):
  • US banks like J.P. Morgan, Goldman Sachs, Citi, and others employ about 150,000 people in India.
  • Some banks have more staff based in India than in any other country outside the US.

2. Driving Forces Behind the Shift

• Abundant and Low-Cost Talent:
  • India's tech and finance universities churn out large numbers of graduates annually, making India an ongoing magnet for operations needing skilled employees.
    • “There will be more opportunities for formal and informal workers. This is because there is no dearth of talent from the tech side in India.” — Sadi Nayak [05:47]
• Cost Advantages:
  • Indian entry-level tech and finance salaries are a fraction of US equivalents: $4,000–10,000/year in India vs. $60,000–120,000 in US.
    • “Firms know that the salary of an Indian tech engineer is much less than what it is in the US for an entry level role…” — Sadi Nayak [12:38]
• Impact of US Immigration Policy:
  • President Trump’s $100,000 H1B visa fee has made it cost-prohibitive for banks to bring Indian talent to the US.
  • This accelerates the trend of banks hiring within India instead of sponsoring visas.

3. Domestic Benefits & Policy Incentives

• Boom in High-Skilled & Informal Jobs:
  • More tech and finance roles means better opportunities for Indian graduates, but also growth in infrastructure and informal jobs supporting the sector.
    • “A tech engineer…has more options on the table…a gcc, a fintech firm.” — Sadi Nayak [14:43]
• Indian Government’s Proactive Stance:
  • Anticipates a new GCC policy framework to further incentivize foreign banks to establish and expand in India.
    • “From our sources we have found out that there is a GCC policy framework that’s going to be in the making…” — Bloomberg Finance Reporter [15:55]

4. Risks and Challenges

• Potential for US Retaliation:
  • US administration under Trump might target Indian GCCs with tariffs or sanctions if offshoring ramps up dramatically.
    • “There is a risk that there could be a backlash from Trump and Trump could now target GCCS next.” — Sadi Nayak [17:21]
• Strategic Balancing Act:
  • Banks are weighing expansion in India against the risk of antagonizing US policymakers.

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Notable Quotes & Memorable Moments

On India’s Transformation as a Financial Hub

• “So what began as low skilled call center jobs in India have now evolved into a mission critical hub of global finance and technology.” — Sadi Nayak [02:05]

On Impact of the H1B Visa Hike

• “JPMorgan CEO Jamie Dimon [said] that the announcement caught everybody off guard.” — Sadi Nayak [10:18]
• “This has actually accelerated the pivot to India. Wall street banks were hiring anyway. This fee is just a push, potentially bringing more jobs to India.” — Sadi Nayak [13:25]

On Real-World Indian Innovations

• “We have information from our sources that the technology behind running this Zelle app was entirely built out of India through Bank of America, Goldman Sachs GCCs in Bangalore and Hyderabad.” — Bloomberg Finance Reporter [06:58]

On Government Policy

• “The government wants to incentivize these firms to build more, more operations in India, set up more offices, employ more workers and kind of steer the job market.” — Bloomberg Finance Reporter [16:23]

On Geopolitical Uncertainties

• “US Firms are walking a fine line as they look to shift more of these roles to India… There is a risk that there could be a backlash from Trump and Trump could now target GCCs next.” — Sadi Nayak [17:15]

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Important Segments & Timestamps

• [02:05] Evolution of India's role in Wall Street operations
• [04:00–04:58] Scale of expansion: multinational bank headcount growth in India
• [06:21–06:58] India's role in developing platforms like BlackRock Aladdin, Goldman Atlas, and Zelle
• [09:31–12:01] Impact and reactions to President Trump’s H1B visa hike
• [13:17–14:00] How visa fees are financially driving the pivot to India
• [15:55–16:36] India’s planned policy incentives for foreign finance firms
• [17:00–17:27] Risk of US retaliation/targeting Indian GCCs

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Summary: Why This Episode Matters

This episode paints a nuanced, detailed picture of how geopolitical shifts, cost advantages, and domestic talent are repositioning India at the financial core of Wall Street’s global ambitions. The episode balances deep reporting (with on-the-ground examples and inside information) with accessible explanations, making it required listening for anyone interested in global labor dynamics, tech, or finance.

India’s rise as a skilled finance and tech hub isn’t only a matter of local pride or economic opportunity—it’s now a critical linchpin in the business strategies of major multinational banks. US immigration policies may have intended to keep more jobs at home, but they are inadvertently fueling even more investment and job creation in India.

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End of Summary

Transcript

[Michael McDermott]

At CES. Michael McDermott, EVP of Samsung, spoke with Bloomberg Media Studios about what the company calls its next AI chapter, your companion to AI Living.

[Samsung Executive]

It's a shift from AI as a feature to AI as a trusted partner in everyday life.

[Bloomberg Audio Studios Announcer]

Bloomberg Audio Studios Podcasts, radio news.

[Sadi Nayak]

If you see the job openings, it's for a senior role, a software engineering role in hydrogen.

[David Gura]

Present level. Yeah.

[Sadi Nayak]

If you scroll below, there is something related to audits. There's technology.

[David Gura]

Earlier this week I went job hunting on LinkedIn with Sadi Nayak, a Bloomberg finance reporter based in Mumbai.

[Sadi Nayak]

You can also experiment with other firms like say a Goldman Sachs.

[David Gura]

Let's do Goldman Sachs.

[Sadi Nayak]

Goldman Sachs has an opening in Hyderabad for corporate planning and management. Vice President so software engineering in Hyderabad.

[David Gura]

Now I am not planning a career pivot or a move from New York to New Delhi. We did this so Sidi could show me that jobs in India's finance sector are not what they used to be. Sidi covers the big Wall street banks. JPMorgan Chase, Morgan Stanley, Goldman Sachs. For years much of the coverage of the global banking industry and its white collar employees was focused on the US And European. But Siddhi and I weren't looking for jobs in New York or Paris. We were looking in India where there is a hiring frenzy.

[Sadi Nayak]

Wall street banks don't have a big presence from the retail side, but if you look at the corporate side as well as the investment banking side and.

[Bloomberg Finance Reporter]

The wealth side, basically they have a huge presence. This is your JP Morgan, your Barclays, your hsbc, your Deutsche Bank.

[David Gura]

Citi is on a team of Bloomberg reporters tracking Wall Street's growing reliance on Indian hubs. This is a shift that's accelerated as President Trump tightens visa requirements and as India's booming wealth management industry and private credit continue to grow.

[Sadi Nayak]

JPMorgan Chase is hiring credit specialists in Bangalore. Goldman Sachs is hiring analysts to review loans tied to everything from commercial property to yachts. So what began as low skilled call center jobs in India have now evolved into a mission critical hub of global finance and technology.

[David Gura]

This is the big Take Asia from Bloomberg News. I'm David Gura in for Wanha. Every week we take you inside some of the world's biggest and most powerful economies and the markets, tycoons and businesses that drive this ever shifting region. Today on the show, Indian based workers once supported American financial services firms. Now they're increasingly key to their operations. How India's government is encouraging Wall street firms to expand their footprint in India and how President Trump's new visa policies could speed up the push. India has been a tech hub for decades. In the late 90s and early 2000s, the country saw a call center boom with multinational corporations like American Express, IBM and Goldman Sachs setting up global capability centers or GCCs and staffing them with Indian workers. The goal was to provide 24,7 low cost operational support for customers in the U.S. here's Bloomberg City Nayak these firms.

[Sadi Nayak]

Operations in India were largely to address grievances of customers or initiate sales through phone calls. So for example, if you're a client based in US and had grievances related to insurance, the chances were that Indians at these call centers would answer these calls and help address these concerns.

[David Gura]

But that has changed dramatically over the last decade. Take Goldman Sachs as an example. In 2004, its office in the southern city of Bangalore had 300 employees, most of whom focused on tech and IT support. Today that same office is home to more than 8,000 employees. Those workers do everything from core financial analysis to risk management. The kind of jobs that used to be done in US cities.

[Sadi Nayak]

Perception that Indian GCCs are providing call center jobs is kind of changing. GCCs that are now offshore centers established by these multinational corporations or financial services firms now deliver high quality, cost effective services and support their global operations. Call center jobs are now being outsourced to other emerging economies like Philippines. Property prices also are cheap because the value of rupee is depreciating vis a vis the dollar.

[David Gura]

So it sounds like there is quite a boom here.

[Bloomberg Finance Reporter]

How far along are we financial services firms? Banks have a significant employee base in India. The top six US banks in India, I.e. jP Morgan, bank of America, Goldman Sachs, Citi, etc. Employ about 150,000 people in India. We know that Goldman Sachs and Morgan Stanley have more staff in India than anywhere outside the us. What we understand from sources is that.

[Sadi Nayak]

One European bank concluded that a catastrophe.

[Bloomberg Finance Reporter]

In India, such as an earthquake would.

[Sadi Nayak]

Disrupt its activities more than a similar.

[Bloomberg Finance Reporter]

Disaster at its headquarters.

[David Gura]

Is this going to be a bigger magnet do you think? In the years ahead?

[Sadi Nayak]

It is going to be a bigger.

[Bloomberg Finance Reporter]

Magnet because most of these colleges as.

[Sadi Nayak]

Well as tech centers are churning out low cost talent on a large scale. There will be more opportunities for formal and informal workers. This is because there is no dearth of talent from the tech side in India. There's always a lot of graduates every year that get pulled up into these roles, which is why we can see the boom expecting to continue. And most of these firms trying to leverage on the talent that is built in India.

[David Gura]

According to estimates from the national association of Software and Service Companies and consulting firm zinov, employment at GCCS in India is projected to jump 50% to as many as 2.8 million people by 2030. Sadi says employees at these GCCS are breaking ground too. A source told Bloomberg that BlackRock's Aladdin Portfolio Management platform was developed in India, as was Goldman's Atlas trading system. Then there's Zelle, the popular payment app. It was developed by Arizona based Early Warning Services. But Sadiq's sources told her that India played a crucial role behind the scenes.

[Bloomberg Finance Reporter]

We have information from our sources that the technology behind running this Zelle app was entirely built out of India through Bank of America, Goldman Sachs gccs in Bangalore and Hyderabad. This was kind of inspired by the fintech revolution in India. We have a UPI Unified Payment Interface system in India where there is a bank to bank transfer of payment systems using a QR code. So most of these inspirations were kind of instrumental in making or building the Zelle app.

[David Gura]

Could you situate this in kind of the broader Indian economy, How important it is, the growth of these GCCs, the importance of Wall Street's interest in putting some of these higher skilled jobs in India.

[Bloomberg Finance Reporter]

So GCCs are a vital component of.

[Sadi Nayak]

The Wall street firm's global strategies as well as for India's economic growth. They are fostering job creation, skill development and foreign investment in India that is in turn getting fed into India's GDP growth. Their revenue is expected to surge to $105 billion from about $40.4 billion in FY19, according to NAS Zinov estimates. So this is the kind of impact that we are talking about. Their growth in India is not just important for fueling economic growth, job creation, but also to get a lot of foreign inflow in terms of foreign direct investments in India.

[David Gura]

This year, US immigration policy threw a wrench in India's workforce overseas, but it also became a boon for their domestic GCCs. How? That's after the break.

[Michael McDermott]

How do you shift AI from being a flashy feature to a trusted partner in consumers everyday lives on the ground at CES Bloomberg Media Studios? Asked Michael McDermott, EVP of Samsung.

[Samsung Executive]

Our 2026 vision is built around an AI companion. It understands you and responds intuitively. This intelligence works quietly in the background across TVs, home appliances and mobile devices. By putting AI at the center of everything we do, we're simply improving everyday life for everyone everywhere.

[David Gura]

In late September, President Trump announced a change to US immigration policy with a big price tag, a $100,000 fee for an H1B visa application.

[Sean Leinart]

The country would rather not have to pay $100,000, but they'd rather. How do you do that? You hire Americans. So there's an incentive to hire Americans.

[David Gura]

The H1B is a non immigrant visa, which allows US employers to temporarily hire foreign workers in highly skilled rolesengineering, technology, medicine. When Trump made the announcement, the US Financial sector found itself relatively unprepared, says Bloomberg City Nayak.

[Bloomberg Finance Reporter]

So Indians make up roughly 70% of H1B holders. When Trump first announced the $100,000 visa fee, it was seen as a big blow for Indians.

[Sadi Nayak]

We had JP Morgan CEO Jamie Dimon say that the announcement caught everybody off guard. Apart from that, we had HSBC stating that the new 100,000 H1B dollar fee in the US was manageable due to their relatively low number of foreign workers compared to other firms.

[David Gura]

JPMorgan AIPAC CEO and head of banking Sean Leinart joined Bloomberg TV's Menika Doshi shortly after Trump's announcement and expanded on the company's disappointment at how this would impact India's younger workforce.

[Bloomberg Finance Reporter]

So will JP Morgan be moving more jobs to your GCC here?

[Sean Leinart]

Yeah, well, that's a very good question. And if it was, it would be a shame because it obviously has been a great source of opportunity for Indian students. You know, India produces 2.8 million STEM students every year and they've gone all over the world, including.

[David Gura]

In a statement to Bloomberg, a White House spokeswoman said changes to the H1B visa program were necessary to put America first. She said the bank's efforts to move jobs overseas is, quote, evidence that they were using foreign workers to undercut Americans wages. Though it is a change, it's not like the rug had gotten pulled out from under India's financial industry. Sadi says the Indian economy was expanding and the upper class was growing.

[Sadi Nayak]

India is in the middle of a wealth boom. The boom had already started post Covid and Trump's announcement of the visa fee. Kind of gotten in for these firms like an incentive to hire more talent inward. Banks that might consider transferring a worker to the US May now be open to hire them in India itself.

[David Gura]

An H1B visa used to cost on average around $5,000. JP Morgan is among the top 10 companies in the US that sponsors the most H1B visas. Sadi says the new visa fee has sparked some chatter among the banks.

[Sadi Nayak]

Some of the Wall street banks in India were looking to talk to their counterparts in the US to talk to them about opening more roles in India, specialist roles in India, to kind of not be impacted by the higher H1B dollar fee.

[David Gura]

Then there's the math involved in hiring people in India versus in a US city.

[Sadi Nayak]

Firms know that the salary of an Indian tech engineer is much less than what it is in the US for an entry level role at a US Bank's gcc, an engineering graduate in India could earn anything between, say, 300,000 rupees to 800,000 rupees a year, depending on the location.

[David Gura]

That's between four and $10,000 per employee.

[Sadi Nayak]

That compares with a $60,000 annual fee for an Indian on a US visa and up to $120,000 for a US citizen in the same role.

[David Gura]

Sadiq says these calculations are driving banks to think differently about the way they balance staffing in their offices in the US and in India.

[Sadi Nayak]

This has actually accelerated the pivot to India. Wall street banks were hiring anyway. This fee is just a push, potentially bringing more jobs to India. So recruitment firms have told us that with the new fee, workers have started to question if a U.S. job is a priority for most of the employees.

[Bloomberg Finance Reporter]

As well as the employers.

[Sadi Nayak]

Firms have also realized that this is not going to be cost effective. And India, which was already seeing a GCC boom, would now benefit from this.

[David Gura]

Trump said the higher H1B visa application fee is to address, quote, abuse of the program and to compel US Companies to hire Americans. But Sadi's reporting shows it could backfire and hurt the US Instead.

[Bloomberg Finance Reporter]

Senior executives from at least two US banks in India are in talks to consider ways to ramp up their global capability centers in India. This is in response to the H1B visa crackdown. According to sources, some global lenders that had extended offer letters for positions in the US are also looking to either revoke them or create alternative roles at these GCCs.

[David Gura]

That's bad news for the US job market potentially, but it could be great.

[Sadi Nayak]

News for India if these jobs are coming to India. It is a boon for the job market. A tech engineer or a tech specialist who has just graduated has more options on the table. He has the option of getting into a startup, a gcc, a fintech firms. The role is being elevated in the sense that he has to do more jobs that involve research, legal, development, specializing, getting into certain spaces that only high skilled talent can tap into. That is the kind of opportunity boom in GCC has provided the tech talent. At the same time, if these firms are getting huge real estate spaces in India. They do require informal jobs as well, and that's kind of being a boon for the entire Indian job market.

[David Gura]

Sadi says the government has seen an opportunity and is working on a set of policies to incentivize the financial sector designed to help the GCC ecosystem thrive.

[Bloomberg Finance Reporter]

India announces its Federal Budget on the 1st of February every year. This is kind of a broad layout that the government has on revenues, taxations, incentives, etc. From our sources we have found out that there is a GCC policy framework that's going to be in the making so that more US Firms or more foreign firms are encouraged and incentivized to build more GCC hubs here. These banks employ a huge workforce in India. Foreign firms bring in a lot of capital for the long term. These are strategic investments made for a 15 to 20 year horizon, which is why the government wants to incentivize these firms to build more, more operations in India, set up more offices, employ more workers and kind of steer the job market.

[David Gura]

Sadi says it'll be a while before we see how this pans out in India and in the US as banks recalibrate their global hiring strategies. One thing banks are watching and something that's holding them back from expanding too aggressively is how Trump could retaliate.

[Bloomberg Finance Reporter]

So US Firms are walking a fine line as they look to shift more of these roles to India.

[Sadi Nayak]

There is a risk that there could be a backlash from Trump and Trump.

[Bloomberg Finance Reporter]

Could now target gccs next. It could bring gccs in Trump's crosshairs. When we spoke to our sources, we found that these banks were considering Trump's imposition of tariffs or sanctions on GCCs as a major risk to their operations. They said that most of these banks and their US Headquarters were talking to Trump about the issues and the fact that they were hiring a lot of people in India. So any impact of the government's orders would directly be felt on these banks operations as well.

[Sadi Nayak]

But that is a story for another day.

[David Gura]

This is the Big Take Asia from Bloomberg News. I'm David Gura. To get more from the Big Take and unlimited access to all of bloomberg.com, subscribe [e-mail] podcastoffer if you like the episode, make sure to subscribe and review the Big Take Asia. Wherever you listen to podcasts, it helps people find the show. Thanks for listening. See you next time.

[Sadi Nayak]

It.