US Green Card Suspension Impact on Indian IT Professionals

The US suspended PERM processing for eight tech companies. India criticised the move as concerns grow for Indian IT professionals.

By News National Editorial Team

Date: October 9, 2026

The United States has suspended new and pending applications under its employment-based Permanent Labor Certification (PERM) programme for eight major technology companies, including Indian IT firms Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant. The move has raised concerns about permanent residency options for Indian technology professionals working in the United States.

The other companies named in reports of the suspension are Capgemini, Microsoft and Adobe. US officials have cited alleged misuse of the programme and concerns about protecting American workers. These are government allegations; they should not be presented as proven wrongdoing by every affected company.

What Does the Suspension Mean?

PERM is a labour-certification step used in many employer-sponsored green card applications. Employers generally need to demonstrate that qualified US workers are not available for the relevant job under the applicable rules and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

The suspension prevents the affected companies from submitting new PERM applications or having pending applications processed under the action. It does not mean that every immigration application filed by these companies has been suspended.

PERM is also distinct from the H-1B temporary work visa programme. The suspension does not, by itself, cancel existing H-1B visas or green cards, although it may delay the permanent-residency process for eligible employees.

Why Indian IT Professionals Are Concerned

For some Indian professionals, employer-sponsored permanent residency is an important part of their long-term plans in the United States. A delay in PERM processing could affect the next steps in their immigration cases and make it harder to plan their future employment and residence.

The consequences will vary according to each person's visa status, application stage and eligibility for other immigration options. Employees should not assume that their current status has been cancelled or that every route to permanent residency is closed. Those with pending cases or approaching visa limits should seek advice from a qualified US immigration attorney.

India Criticises the US Decision

India's Ministry of External Affairs said on October 9 that the US measures do not advance the shared ambitions of the two countries. It emphasised that the movement of skilled professionals benefits both economies through innovation, research, productivity, competitiveness and job creation.

The ministry also criticised US Vice President JD Vance's description of foreign workers as “foreign indentured servants,” calling the terminology deeply offensive because of its historical and colonial connotations.

The response reflects India's concern about the treatment of its skilled workforce and the importance of talent mobility to India-US economic cooperation.

TCS said it did not expect the suspension to affect its workforce strategy or customer engagements. The company reiterated its plan to hire 15,000 workers in the United States over the next five years and said its PERM applications had been in single digits over the previous two years.

Microsoft also rejected the suggestion that its hiring practices involved the alleged misuse described by US officials. It said around 80% of its approximately 6,000 H-1B applications in the previous fiscal year related to extending or changing the status of existing employees. It added that the remaining applications concerned people already legally in the United States, with new hires through those applications representing about 1% of its US workforce.

These are company statements and should be distinguished from the US government's allegations and investigations.

The immediate questions concern how long the suspension will remain in place, how pending applications will be handled and whether the affected companies will be able to resume PERM processing.

The decision highlights the tension between US efforts to protect domestic employment and the technology industry's reliance on international expertise. For Indian professionals, the practical effects will depend on the implementation of the suspension and their individual immigration circumstances.

For India and the United States, the challenge will be to address labour-market concerns while preserving the skilled talent exchanges that support business, research and innovation.

Sources

1. Reuters — US PERM green card programme suspension

2. News on AIR — Suspension affecting eight major technology companies

3. The Indian Express — India's response to the US decision

4. The Economic Times — TCS and Microsoft responses