New Delhi: India on Friday criticised the United States’ decision to suspend eight technology companies from the Permanent Labour Certification (PERM) programme, saying the move does not advance the shared ambitions of the two countries. The Ministry of External Affairs (MEA) also described remarks referring to foreign workers as “indentured servants” as deeply offensive, defending Indian professionals as highly skilled contributors to the US economy and innovation ecosystem.

The US Department of Labour’s action affects major technology companies, including Indian IT services firms Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant, as well as Capgemini, Microsoft and Adobe. The suspension prevents the affected companies from filing new PERM applications or processing pending applications under the programme.

However, the MEA clarified that PERM is separate from the H-1B visa programme and that the suspension does not automatically invalidate existing H-1B visas or change the immigration status of visa holders and their dependents.

MEA calls ‘indentured servants’ remark offensive

In a statement responding to the announcement by the US Department of Labour, the MEA said descriptions of foreign workers as “indentured servants” were unwarranted and overlooked the contributions made by Indian professionals to the American economy.

“We believe that such descriptions are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its economy and innovation ecosystem,” the ministry said.

The MEA also referred to the role of immigrants in shaping the United States, arguing that generations of migrants had contributed to the country’s economic growth and prosperity through their labour, enterprise and innovation.

“Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive,” the statement added.

India stressed that talent mobility benefits both countries by enabling businesses to access specialised skills, supporting research and innovation, improving productivity and strengthening competitiveness.

The ministry said it expected all stakeholders to recognise the mutual benefits of professional mobility between India and the US. It added that the measures announced by Washington did not advance the shared ambitions of the two countries and confirmed that it would continue to monitor developments.

What is the PERM programme?

PERM, or Permanent Labour Certification, is an important step in the US employment-based immigration process. Employers generally need to obtain labour certification from the Department of Labour before sponsoring eligible foreign workers for certain employment-based Green Cards.

The process is intended to establish that employing a foreign worker in the relevant position meets applicable labour-market requirements, including requirements concerning the availability of qualified US workers.

The suspension of the eight companies from the programme could disrupt permanent-residency applications for eligible employees whose cases depend on employer-sponsored PERM certification. Applications that have not yet completed the relevant stages could face delays or uncertainty while the restrictions remain in place.

The immediate implications, however, differ from those associated with the H-1B visa programme, which allows US employers to hire eligible foreign workers in specialised occupations on a temporary basis.

The MEA specifically clarified that the PERM action does not, by itself, cancel existing H-1B visas or alter the status of visa holders and their dependents. The suspension primarily concerns the affected companies’ ability to file or process PERM applications.

Eight technology companies affected

The companies named in reports on the US action include five major Indian IT services firms and three other global technology companies.

The affected companies are:

  • Tata Consultancy Services (TCS)
  • Infosys
  • Wipro
  • HCLTech
  • Cognizant
  • Capgemini
  • Microsoft
  • Adobe

The move has drawn attention because these companies employ large numbers of technology professionals and operate across international markets. For eligible employees pursuing employment-based permanent residency, restrictions on PERM applications could complicate or delay their immigration plans.

The consequences for individual workers will depend on the stage of their applications, their existing immigration status and the specific circumstances of their employment.

The suspension does not mean that every employee of the affected companies will lose their immigration status or that all existing visas will become invalid.

JD Vance defends action, cites American jobs

US Vice President JD Vance defended the administration’s action, arguing that companies should not lay off American employees and subsequently replace them with foreign workers.

Speaking about Microsoft, Vance said the administration wanted companies to continue investing and expanding in the United States but expected them to employ American workers.

“We obviously want you to thrive in the United States of America. We want people to invest in the United States of America, particularly the American technology sector,” Vance said.

He added that the administration wanted companies to grow and create employment but insisted that American workers should benefit from those opportunities.

“You cannot lay off American workers and then replace them with foreign indentured servants,” he said.

The remarks reflect the Trump administration’s stated emphasis on protecting domestic employment and scrutinising the use of foreign-worker programmes. India, meanwhile, has challenged the characterisation of foreign professionals and highlighted their contribution to American businesses, technological development and innovation.

India highlights mutual economic benefits

The MEA argued that professional mobility between India and the US supports economic activity in both countries. While overseas employment provides opportunities for Indian professionals, American companies also benefit from access to skilled workers in technology and other specialised fields.

According to the ministry, talent mobility supports innovation, research, productivity, competitiveness and job creation, while contributing to shareholder wealth in the United States.

The statement emphasised that the relationship should be viewed in terms of its broader economic benefits rather than solely through the lens of foreign-worker recruitment.

The issue is significant for Indian IT services companies, which maintain extensive operations in the US and employ professionals across software development, consulting, engineering and other technology-related fields.

The suspension could create uncertainty for eligible employees seeking permanent residency through employer sponsorship, even as existing H-1B visa holders remain unaffected solely by the PERM action.

India has said it will continue to follow developments. The issue now places the focus on how the US administration implements the restrictions and how the affected companies and their employees navigate the resulting immigration-related challenges.