New Delhi, Oct. 9 -- India on Friday criticised the US administration's decision to suspend permanent labour certification processing for eight major technology companies, including Tata Consultancy Services (TCS), Infosys and Wipro, warning that the move undermines the shared ambitions of the two countries. New Delhi also strongly objected to US Vice President JD Vance's description of foreign professionals as "indentured servants", calling the remarks "unwarranted and deeply offensive" and saying they disregarded the contribution of skilled Indian workers to the American economy.
The US Department of Labour has barred the processing of new and pending Permanent Labour Certification (PERM) applications involving Infosys, TCS, Wipro, HCL Technologies, Microsoft, Adobe, Capgemini and Cognizant. The measure is part of the Trump administration's broader efforts to reduce the employment of foreign workers in the United States.
PERM certification is a crucial step in the employer-sponsored green-card process for foreign professionals seeking permanent residency. The suspension could affect thousands of Indian technology workers who entered the US on H-1B visas and are pursuing permanent residency through their employers.
In a statement, the Ministry of External Affairs (MEA) said the movement of skilled professionals benefits both countries by supporting innovation, research, productivity and job creation.
"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 ministry said.
The MEA described the issue as an area of "tremendous mutual benefit" and expressed hope that all stakeholders would recognise its importance. "The steps announced by the US do not advance the shared ambitions of both countries," it said. New Delhi also responded to Vance's criticism of technology companies employing foreign professionals. The vice-president accused firms of bringing in foreign workers to replace American employees and reduce wage costs.
The MEA said such descriptions ignored the fact that Indian professionals were highly educated and contributed significantly to the US economy and innovation ecosystem. It also pointed to the country's history of immigration, noting that generations of immigrants had helped shape American growth and prosperity.
"Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive," the ministry said, adding that it would continue to monitor developments.
US Labour Secretary Keith Sonderling announced the restrictions on Thursday, stating that the department would not accept new applications or process pending permanent labour certification applications involving the eight companies.
Microsoft, one of the companies affected, said the action needed to be viewed in the context of its existing workforce. The company said about 6,000 H-1B visa applications submitted during the previous financial year were largely intended to extend or change the status of current employees.
"80 per cent were to extend or change the status of existing Microsoft employees. These were not to hire new people," it said. Applications for new employees accounted for only about 1 per cent of its US workforce, the company added.
Microsoft said the PERM suspension did not automatically affect the validity of existing H-1B visas or the status of visa holders and their dependents, although it could disrupt eligible employees' permanent-residency applications.
The decision comes amid strained India-US relations following Washington's punitive tariffs, higher H-1B visa fees and disagreements over President Donald Trump's claims about helping de-escalate the May 2025 India-Pakistan military clashes. Although both governments have sought to repair ties and advance trade negotiations, a trade agreement remains elusive.
Separately, US lawmakers have passed legislation allowing punitive tariffs of up to 100 per cent on countries importing Russian crude oil, including India. Trump has signed the bill, adding another potential source of friction between the two countries.
Published by HT Digital Content Services with permission from Millennium Post.