Full Breakdown
US Vice President JD Vance’s “Foreign Indentured Servants” Remarks Prompt India-U.S. Diplomatic Row
By Drooid · · How we work
Event Overview
On October 8, 2026, Vice President JD Vance addressed a Fraud Task Force press conference at the White House and announced that the U.S. Department of Labor would suspend several major Indian information-technology firms from the Permanent Labor Certification (PERM) program. The announcement coincided with Vance’s comment that “you cannot lay off American workers and then replace them with foreign indentured servants.” The following day, October 9, 2026, India’s Ministry of External Affairs issued a statement calling the terminology “deeply offensive” and defending the contributions of Indian professionals in the United States.
Background on PERM and H-1B Programs
The PERM program is a Labor Department certification that serves as the first step for employers seeking to sponsor foreign workers for employment-based permanent residency. It is distinct from the H-1B visa program, which allows U.S. employers to hire foreign workers in specialized occupations. Indian nationals have historically comprised the largest share of H-1B holders; official data show that around 70 % of H-1B beneficiaries in 2025 were born in India.
Official Statements & Responses
U.S. Labor Secretary Keith Sonderling announced the suspension of Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and Adobe from the PERM program. The ministry also clarified that the measures will not affect the validity of existing H-1B visas or the status of current visa holders and their dependents.
Data & Statistics
- Vance claimed Microsoft laid off 6,000 American workers and simultaneously benefited from 6,300 H-1B visas and almost 3,000 green cards, asserting a replacement ratio of one and a half foreign workers for each laid-off employee.
- The PERM suspensions target the listed firms, which are among the largest Indian IT service providers operating in the United States.
Verbatim Quotes
- “You cannot lay off American workers and then replace them with foreign indentured servants,” — D. Vance, vice president
- “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,” — India's External Affairs Ministry