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Diplomatic Clash Over U.S. Green-Card Suspension Involving Indian Tech Firms
By Drooid · · How we work
Diplomatic Clash Over Green-Card Suspension
The United States announced a suspension of new and pending applications under the Permanent Labor Certification (PERM) process for several major technology companies, including a number of Indian-based firms. Vice President **J.D. India’s Foreign Ministry called Vance’s description of foreign workers as “indentured servants” “deeply offensive.”
Policy Background and Affected Companies
The PERM step is essential for employers seeking to sponsor foreign workers for permanent residency (green cards). The suspension applies to new and pending PERM filings for Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini. Existing H-1B visas and the status of current visa holders remain unaffected, though the green-card pathway for eligible employees at these firms could be disrupted.
Official Reactions
- India’s Foreign Ministry: *“Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive.”* “Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive,” — India’s Foreign Ministry
- Nasscom, the Indian IT industry body, noted that Indian technology companies have markedly reduced reliance on H-1B visas, with relatively few employees pursuing green cards through PERM.
- Microsoft disputed Vance’s employment figures, stating that roughly 80 % of its about 6,000 H-1B applications in the last fiscal year were extensions or status changes for existing staff rather than new hires.
Data and Market Impact
- Vance cited Microsoft’s layoff of 6,000 American workers last year, alongside 6,300 H-1B visas and nearly 3,000 green cards.
- The Indian market reacted positively; shares of the listed IT firms rose following the announcement, reflecting investor confidence that the broader market would absorb the U.S. policy shift.
The episode underscores a growing tension between U.S. immigration enforcement and the contributions of foreign-trained professionals, particularly from India, to the American tech sector.