India’s Ministry of External Affairs (MEA) reacted strongly to the US announcement to suspend the Permanent Labor Certification (PERM) program used by major IT companies for getting green cards for their foreign employees.

Reacting to the announcement made by the US Labor Secretary in the presence of Vice President J D Vance, India’s MEA, on Friday, October 9, called it a move harmful for the “shared ambitions of both countries.”

US Labor Secretary Keith Sonderling said on Thursday that his department will not accept any fresh application for PERM or process the pending applications from eight major IT companies.

The companies named were Microsoft, HCL, Cognizant, Adobe, Capgemini, Tata Consultancy Services (TCS), Infosysis, and Wipro.

Among these firms are some of India’s biggest IT companies with the majority of them employing a large number of IT professionals from outside the US. The move is seen as a part of the Donald Trump administration’s crackdown on immigration.

Almost 70% of H-1B visa holders are Indians which means the halt in PERM will affect the Indian IT professionals the most.

PERM is the first step for an employer in the US to sponsor a green card for its foreign employee. According to the US laws, the employer must prove it tried and failed to get a local for the job before it can sponsor a foreign person.

According to Sonderling, these eight companies have sought almost three million foreign workers and received over 230,000 H-1B visas and over 100,000 PERMs since 2009, claiming all these were “jobs that were taken from American workers.”

Vance said the Donald Trump administration wants the companies to prioritize local recruitment instead of getting “foreign indentured labor.”

He accused companies of abusing the H-1B visa program, claiming there have been multiple cases pending in the federal investigation about fraud in recruitment and the violation of its “best of the best” clause.

Unwarranted and deeply offensive

In a brief statement, India’s MEA on Friday called Vance’s comments about “foreign indentured labor” “unwarranted” and deeply offensive, claiming it “ignores the fact that Indian professionals in the US are highly educated and skilled contributors to its economy and innovative ecosystem.”

“The history of the US itself has been shaped by generations of immigrants whose labor, enterprise and innovation have contributed to its growth and prosperity” it underlined, further noting that “resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive.”

Millions of Indians were taken out of the country to different parts of the world for indentured labor during the British colonial period in the nineteenth and early twentieth centuries.

The US decision has already led to widespread reactions from the opposition groups asking the Indian government to take measures to protect the interest of the country’s IT professionals.

In a post on X, Jairam Ramesh, leader of the main opposition party, the Indian National Congress (INC), asked the government to retaliate to the US move, claiming failure to do so would be tantamount to surrendering the country’s interests to a bully.

Ramesh accused the Narendra Modi-led ultra-right-wing government in the country of adopting a policy of “appeasement” toward the US, citing its recent decision to impose user charges on payments through mobile phones in the country as one crucial example of how it is going out of the way to do so.

Ramesh claimed Washington’s decision to suspend the visas yet again proves that such a policy never pays off.

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