US Suspends Tech Firms From PERM Program; India Clarifies H-1B Visa Status

The United States government has suspended several major technology and IT outsourcing companies, including Infosys Limited (NSE:INFY) and Capgemini SE (EURONEXT:CAP), from the Permanent Labor Certification (PERM) program. The decision, which follows multiple active federal investigations, halts the processing of new and pending permanent labor applications for these firms. In response, India's Ministry of External Affairs clarified that while the suspension could impact the permanent residency and green card process for eligible employees, it does not directly affect the validity or status of existing H-1B visas.

The suspension has sparked political tension, with Indian officials criticizing remarks made by US Vice President JD Vance. Vance defended the move by alleging widespread fraud in the visa program and describing foreign workers as "foreign indentured servants." He specifically pointed to Microsoft Corporation, noting the company laid off 6,000 American workers last year while receiving thousands of H-1B visas and green cards. Indian representatives rejected these characterizations, calling them offensive and noting that skilled professionals contribute significantly to US innovation and economic growth.

Going forward, stakeholders will be watching the outcome of the federal investigations and how the suspension affects recruitment at major tech employers. While the immediate validity of H-1B visas remains intact, prolonged blocks on permanent residency certifications could create long-term hiring and retention challenges for the affected firms.