The Ministry of External Affairs (MEA) has criticised the United States’ decision to freeze the permanent labour certification process for select tech firms.

The Ministry of External Affairs has criticised the United States’ decision to freeze the permanent labour certification (PERM)  process for select tech firms, such as TCS, Infosys, HCL and Wipro, warning that curbs on mobility of Indian professionals undermines the interest of both countries.

The government also strongly objected to US Vice-President JD Vance’s description of H-1B visa holders as “foreign indentured servants”, calling the terminology “deeply offensive” and dismissive of Indian professionals’ contribution to the American economy.

“The steps announced by the US do not advance the shared ambitions of both countries,” the MEA said in a statement on Friday, adding that talent mobility added 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 noted.

On Thursday, US Labour Secretary Keith Sonderling and Vance announced immediate suspension of eight major technology corporations from the PERM programme, targeting Indian IT companies TCS, Infosys, Wipro, HCL Technologies and Cognizant, alongside Capgemini, Microsoft and Adobe.

Primary legal gateway

PERM is the primary legal gateway used by foreign tech talent to transition from temporary employment to permanent residency. Under the latest order, the US will reject new PERM applications and halt pending ones, obstructing the process of permanent residency.

TCS sees no impact from US green-card programme suspension on workforce strategy

The MEA also slammed Vance’s labeling of H-1B visa holders as “foreign indentured servants” who, he said, are underpaid compared to their American counterparts and are easily exploited because they face deportation if terminated.

Such descriptions are unwarranted, it said. “The history of the US itself has been shaped by generations of immigrants whose labour, enterprise and innovation have contributed to its growth and prosperity. Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive,” the statement underlined.

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,” the MEA stated.

Published on October 9, 2026