PERM suspension: India calls JD Vance remark on H-1B workers offensive
Why in the news
On October 9, 2026, India’s Ministry of External Affairs (MEA) rejected US Vice President JD Vance‘s description of foreign IT workers on H-1B visas as “indentured servants”. The remark accompanied a US decision, announced on October 8, to suspend several IT and technology firms from the PERM green-card process.
Key facts
- MEA response: India termed the remark unwarranted and deeply offensive, said the wording carries painful colonial-era connotations, and stressed that Indian professionals in the US are highly educated and skilled.
- Talent mobility: The MEA said mobility of skilled workers benefits both economies and that India is in touch with US authorities on the issue.
- Vance’s claim: He said H-1B workers earn about $20,000 less than comparable Americans, and outsourcing-firm workers about $48,000 less.
- Agency: Labor Secretary Keith Sonderling announced the suspensions, citing visa misuse and fraud; Vance said they could last as long as needed.
- H-1B status: The step targets PERM only; it is not a blanket cancellation of H-1B visas.
- Indian share: About 70% of H-1B holders are Indian nationals.
Firms suspended: what sources report
| Source | Reported count |
|---|---|
| Business Today | Six outsourcing firms: Cognizant, Infosys, TCS, Wipro, HCL, Capgemini |
| The Hindu (via Legacy IAS) | Eight firms, five of them Indian multinationals |
| ABC News 4, South First | Eight: Microsoft, Adobe and the six outsourcing firms |
About PERM
The Permanent Labor Certification Program (PERM) is run by the US Department of Labor. It is usually the first step an employer takes to sponsor a foreign worker for an employment-based green card (permanent residency). H-1B, by contrast, is a temporary work visa.
Exam angle
- PERM is a Department of Labor process linked to green cards, not to H-1B visas.
- Indians hold roughly 70% of H-1B visas.
- Counts of suspended firms differ across reports (six outsourcing firms versus eight in total).