India has said the US decision to suspend certain companies from the Permanent Labour Certification (PERM) programme does not, by itself, affect existing H-1B visas.
It also warned that the steps announced "do not advance the shared ambitions of both countries".
In a statement issued in New Delhi on Friday, India said it was aware of the US Department of Labour's decision. It stressed that PERM is distinct from the H-1B visa programme.
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The suspension of PERM applications does not affect the validity of existing H-1B visas or the status of visa holders and their dependents, it said.
It added that there could be some impact on the permanent-residency, or green card, process of eligible employees at the affected companies.
India said talent mobility creates opportunities for Indians but equally helps US companies with talent, innovation, research, productivity, competitiveness and job creation.
It also creates shareholder wealth in the US. It called this an area of "tremendous mutual benefit" and said it expects all stakeholders to appreciate that.
The statement also took aim at comments by the US Vice President JD Vance.
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Vance said that companies 'bring in indentured servants, lay off American workers, and make a ton of money by undercutting the wages of American workers, replacing them'.
Vice President JD Vance announces the suspension of the PERM Program for Microsoft: "Thanks to an ongoing investigation, we have decided to suspend the PERM program for Microsoft, which means they will no longer be able to take those H-1Bs and apply for permanent resident status within the United States of America. Now our message to Microsoft and to any other foreign or domestic corporation is quite simple. We obviously want you to thrive in the United States of America. We want people to invest in the United States of America, particularly the American technology sector. We're the biggest boosters of your industry. We want you to continue to grow and to employ a lot of people, but we want you to employ American workers. And so our message to Microsoft is, you're great American company, but you've got to hire great American workers. You cannot lay off American workers and then replace them with foreign indentured servants."
— Vice President JD Vance (@VP) October 8, 2026
India called such descriptions unwarranted and said they ignore the contribution of Indian professionals, whom it described as highly educated and skilled contributors to the US economy and innovation ecosystem.
It noted that US history has been shaped by generations of immigrants, and said terminology with "painful historical and colonial legacy connotations" is "deeply offensive".
India said it would keep following developments.
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The US Labor Department on Thursday suspended Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from PERM, citing active federal investigations.
PERM is the step where an employer must show that no qualified and willing US workers are available. It is generally a prerequisite for sponsoring an employment-based green card.
The stakes are high for Indians. Indian nationals make up roughly 70% of H-1B holders.
Because the green-card backlog for Indian applicants runs well beyond the six-year H-1B limit, many need a certified PERM to stay on.
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