Key facts
- US suspended PERM green-card processing for Microsoft, Adobe, TCS, Infosys, Wipro, HCLTech, Cognizant, and Capgemini.
- India receives around $125 billion in annual remittances, with the US contributing about 25%.
- The US decision could lead to fewer high-earning Indians working in the US, impacting remittances and angel investments in Indian startups.
- US companies may shift more work to India due to difficulties in bringing skilled workers to America.
The US administration has suspended the PERM green-card labor certification process for eight major technology companies, including Microsoft, Adobe, Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, and Capgemini. This move has sparked debate about skilled foreign workers in the US and the impact of tighter immigration policies.
India has officially objected to the decision, with the external affairs ministry calling US Vice President JD Vance's description of immigrant workers as 'foreign indentured servants' offensive. India reminded the US that talent mobility benefits both economies by providing opportunities for Indian professionals and access to cutting-edge talent for US companies.
Experts suggest the suspension could lead to reduced remittances to India, estimated at around $125 billion annually with a significant portion from the US. It may also impact India's soft power and reduce angel investments in domestic startups. However, some see an opportunity for India as US companies might shift more work to the country, potentially expanding Global Capability Centers and encouraging top engineering talent to build domestic companies.