India on Friday criticised the US suspension of 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 called remarks describing foreign workers as “indentured servants” “deeply offensive”, defending Indian professionals as highly skilled contributors to the US economy.
In a statement, the MEA said PERM was distinct from the H-1B visa programme and clarified that the suspension did not, by itself, affect the validity of existing H-1B visas or the status of visa holders and their dependents. However, it could affect the Green Card or permanent-residency process for eligible employees of the companies concerned.
“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 MEA said.
PERM, or Permanent Labour Certification, is a key step employers generally need to complete before sponsoring eligible foreign workers for employment-based Green Cards. The US Department of Labour’s action concerns the programme at certain companies, including Indian IT services firms such as Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant.
The ministry also stressed that talent mobility benefits both countries by supporting innovation, research, productivity, competitiveness and job creation in the US.
“Talent mobility adds value to both economies. While it creates opportunities for Indians, it equally helps US companies with cutting-edge talent, innovation, research, productivity, competitiveness and job creation, besides creating shareholder wealth in the US,” the statement said.
“This is therefore an area of tremendous mutual benefit for the two countries and our expectation is that all stakeholders in this process can appreciate this fact. The steps announced by the US do not advance the shared ambitions of both countries,” it added.
The MEA said it would continue to follow developments on the issue.
US PERM suspension: TCS to Microsoft, Trump & Co's move targets tech giants
The US Department of Labour has suspended eight companies from the PERM programme: Indian IT services firms Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant, along with Capgemini, Microsoft and Adobe.
The suspension means the companies cannot file new PERM applications or process pending ones. PERM is a key step employers generally need to complete before sponsoring eligible foreign workers for employment-based Green Cards.
The move could disrupt permanent-residency applications for eligible employees of the affected companies, but does not automatically cancel existing H-1B visas, as clarified by the government.
What did JD Vance say?
US Vice President JD Vance defended the action against the companies, accusing them of replacing American workers with foreign employees. Speaking about Microsoft, he said companies could not lay off American workers and replace them with “foreign indentured servants”.
“Now our message to Microsoft and to any other foreign or domestic corporation is quite simple. 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. We’re the biggest boosters of your industry. We want you to continue to grow and to employ a lot of people, but we want you to employ American workers. And so our message to Microsoft is, you’re great American company, but you’ve got to hire great American workers,” Vance said in a strongly worded statement.
“You cannot lay off American workers and then replace them with foreign indentured servants,” he added.
The Trump administration has said the action is aimed at protecting American jobs and scrutinising the use of foreign-worker programmes.
The MEA pushed back against the characterisation, saying Indian professionals were highly educated and skilled contributors to the US economy and innovation ecosystem.