India Criticizes Vance Remarks as U.S. Suspends PERM Filings for Companies

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India’s government said Friday that remarks by U.S. Vice President JD Vance about foreign workers were “deeply offensive,” following a U.S. Labor Department announcement suspending several companies from the Permanent Labor Certification, or PERM, program.

Vance said the administration expects companies to hire U.S. workers and said businesses should not replace domestic employees with foreign workers. He alleged that Microsoft had replaced 6,000 laid-off employees with H-1B visa holders. India’s Ministry of External Affairs said his language had historical and colonial connotations and described Indian professionals as skilled contributors to the U.S. economy and innovation.

According to the Labor Department announcement, Microsoft, Adobe and several Indian technology companies, including Cognizant, Infosys, Capgemini, Tata Consultancy Services, Wipro and HCL, were affected by the PERM suspension. The measure bars the affected companies from submitting permanent-residency applications for employees on H-1B visas.

India’s foreign ministry said the action would not affect the validity of active H-1B visas or the status of current visa holders and their dependents. Tata said the PERM suspension would not change its staffing plans and that it would continue with plans to hire 15,000 additional workers.

Same Facts. One Perspective.

One viewpoint on the same facts.

Notice who is quiet in this story. Tata says its hiring plans won't change and it will still bring on 15,000 people. Microsoft and the others haven't said much. The two governments are trading insults over dignity and colonial echoes. The people with the most to lose, H-1B workers waiting for permanent residency, are mentioned only as a category the Indian ministry says won't be affected.

That reassurance deserves skepticism. A PERM suspension doesn't stop a company from hiring on H-1Bs. It stops the company from sponsoring the workers it already has for green cards. The labor certification is the first step on the path out of temporary status. Freezing it keeps a worker in the status that makes them cheapest and least able to bargain. An H-1B holder who can't change employers without risking their legal standing is the kind of worker an employer can underpay, overwork and quietly lay off last. Cutting off the exit hurts the person on the leash more than the person holding it.

This is the left's real argument about guest-worker programs, and Vance's framing obscures it. The danger isn't that Indian engineers are taking jobs from Americans because of who they are. It's that the law ties a worker's residence to an employer's goodwill, creating a labor pool that can be hired at a discount and discarded. Outsourcing firms such as Cognizant, Infosys and TCS built business models around that arbitrage, and big American employers learned from them. If Microsoft did replace laid-off staff with visa holders, as Vance alleges (it's an allegation, and the pattern of layoffs alongside visa filings is worth investigating), the scandal is the structure that made it profitable.

The serious fix is also the obvious one: make the visa follow the worker, not the company. Set real prevailing-wage floors so no one is cheaper because of their passport. Clear the green-card backlogs, which for Indians run to decades under per-country caps, so no one spends a career in conditional status. Punish firms that use layoffs and visas as a wage-suppression strategy, with audits and debarment that bite. A suspension that leaves the firms unbothered and the workers in limbo does none of this. It lets the administration say it acted while the incentive to exploit stays intact.

Nor should New Delhi be let off lightly. The ministry is right to object to rhetoric that treats skilled professionals as a contaminant. But "valued contributors to American innovation" is the language of an industry that profits from the arrangement. India's IT services sector earns billions by exporting labor under rules that keep wages low and workers dependent. A government that cared about its professionals as much as its prestige would demand portability and a path to permanence, not just respectful speech.

The American worker laid off in a restructuring and the Indian worker told to wait are being set against each other, and both are being held in place by the same corporate preference for flexibility over obligation. Vance picked a fight over tone. The question that matters is whether anyone will rewrite the terms.

How it may affect me

If you're on an H-1B and your employer is among those named, your current visa and dependents' status are reportedly unaffected. But the suspension could delay green-card sponsorship, and workers nearing the six-year H-1B limit, who generally need a pending case to extend, may be most exposed. Check with an immigration attorney about your timeline and whether your employer has other options. US workers should expect no immediate change in hiring conditions.

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