PERM programme's suspension won't affect existing H-1B visas, clarifies MEA

MEA also objected to US Vice President JD Vance's description of H-1B workers as "foreign indentured servants", calling the terminology "deeply offensive" for its historical and colonial connotations

The Ministry of External Affairs (MEA) on Friday said the US decision to suspend certain companies from the Permanent Labour Certification (PERM) programme would not affect the validity of existing H-1B visas or the status of their holders and dependents. However, the move could affect the Green Card process of eligible employees, the MEA said.

 

In a statement, the ministry said, "It should be noted that PERM is distinct from the H-1B visa programme. The suspension of PERM applications does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents, though there could be some impact on the permanent-residency/Green Card process of eligible employees of the affected companies.

 

“Talent mobility adds value to both economies” by creating opportunities for Indian professionals and helping US companies access skilled talent, drive innovation and create jobs, the MEA said. It added, “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," the ministry said. 

 

US Labour Secretary Keith Sonderling on Thursday announced the suspension of Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from the PERM programme, alleging that the companies had taken “hundreds of thousands of jobs” from American workers.

 

“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said, adding that Microsoft and Adobe were also being suspended.

 

The US Department of Labour said it would not accept new applications or process pending permanent labour certification applications involving these companies.

 

The MEA also responded to remarks made by US Vice President JD Vance, who was present alongside Sonderling during the announcement. Vance accused technology firms of replacing American workers with foreign employees at lower wages, describing H-1B workers as “foreign indentured servants”.

 

The MEA called the description unwarranted, saying it overlooked Indian professionals' contributions to the US economy and innovation ecosystem. It added that such terminology carried painful historical and colonial legacy connotations and was “deeply offensive”.

 

“Indeed, the history of the United States itself has been shaped by generations of immigrants whose labour, enterprise and innovation have contributed to its growth and prosperity,” the ministry said.

 

The MEA said it would continue to follow developments around the issue.