By:CNBCTV18.comOctober 9, 2026 | 17:49 IST
- Edited byAjay Vaishnav
- Published OnOct 9, 2026 | 17:49 IST
- Last Updated OnOct 9, 2026 | 17:49 IST
US Vice President JD Vance speaks during a midterm campaign rally to support the GOP gubernatorial candidate Byron Donalds in Lakeland, Florida, US, October 1, 2026
The US suspension of PERM green-card processing for Microsoft, Adobe, and six IT firms has sparked reactions from Indian tech leaders. While Shobhit Mathur defended H-1B contributions, Vineet Nayar noted it could push more American tech work to India.
The US administration has suspended PERM green-card labour certification processing for Microsoft, Adobe and six IT companies with ties to India. The move has drawn reactions from Indian technology leaders, renewing debate over the role of skilled foreign workers in the American economy and the impact of tighter immigration policies on businesses and professionals.
The six IT services companies affected are Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant and Capgemini.
PERM certification is generally required for employers sponsoring eligible foreign workers for employment-based green cards. The suspension could affect the permanent-residency process for eligible employees, but it does not automatically invalidate their existing H-1B visas.
Announcing the suspension, Vice President JD Vance said, “If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants.”
Amazon AWS Co-Founder Defends H-1B Workers
Shobhit Mathur, co-founder and vice-chancellor of Rishihood University, defended the contribution of H-1B visa holders to the US technology industry, drawing on his experience of joining Amazon when the company was still making losses.
In a post on X, Mathur said he was part of the initial team that built Amazon Web Services (AWS). “There were about a hundred H1B visa holders like me in the initial team of Amazon. Good luck building companies and wealth without these ‘indentured servants’,” he wrote.
Harish Bijoor Warns Of Possible Talent Movement Between Companies
Brand expert Harish Bijoor, founder of Harish Bijoor Consults Inc., said the suspension could prompt employees awaiting green cards to move to companies that remain eligible to sponsor their applications.
Speaking to ANI, Bijoor described the decision as a major change but said it appeared to be a suspension rather than a complete cancellation of the programme. He added that it remained uncertain when the route might be reinstated.
Bijoor said employees who were unwilling to wait could consider moving from the affected companies to firms where green-card sponsorship remained possible.
Dinesh Pai Flags Potential Impact On India
Dinesh Pai, vice-president of investments at Zerodha, highlighted the possible economic implications for India if tighter US immigration rules lead to fewer high-earning Indians working in the country.
In a post on X, Pai said the restrictions could lead to lower remittances, a decline in India’s soft power and fewer angel investments reaching Indian startups. He noted that India receives around $125 billion in remittances annually, with the US contributing roughly a quarter of the total.
Pai also highlighted a potential opportunity for India. He suggested that US companies could move more work to India if bringing skilled workers to America becomes more difficult.
https://x.com/dineshpaii/status/2108241250474512625
Vineet Nayar Says US Restrictions Could Push More Tech Work To India
Former HCL Technologies CEO and founder chairman Vineet Nayar has said that the restrictions on Indian technology professionals could unintentionally push more American technology work to India.
On X, Nayar said the impact of the US decision to restrict the use of the PERM labour certification process by certain major technology companies may be less significant than it appears. He suggested that the long-term consequences for India’s IT industry could be much greater.
He added the broader changes in how technology work is delivered could open up new opportunities for the country. “Trump may make it harder for Indian engineers to move to American work. The opportunity is to make American work move to Indian engineers,” he wrote.
MEA Calls ‘Indentured Servants’ Remark Deeply Offensive
The Ministry of External Affairs has also criticised Vance’s description of foreign workers as “indentured servants”, calling the terminology “deeply offensive”.
In its statement, the ministry said Indian professionals in the United States were highly educated and skilled contributors to the country’s economy and innovation ecosystem. It added that generations of immigrants had helped shape the United States through their labour, enterprise and innovation.
The MEA also distinguished the PERM programme from the H-1B visa system, clarifying that suspending PERM applications does not automatically affect the validity of existing H-1B visas or the status of visa holders and their dependents.
Tags
green cardUnited States (US)
Add as preferred sourceCheck out our in-depth Companies newsand Industries wise updates on CNBC-TV18. Explore more India & Worldnews, Expaliners and Interviews on CNBC TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
///
More from Companies
Global tech and IT firms green-card program under attack from Trump
Canara Robeco AMC Q2 Results: Net profit up 22% to ₹59 crore, declares ₹2 dividend
Persistent Systems bags additional 10.79% stake in Nagarro SE in extended offer period
