New Delhi (TIP): India on Friday strongly objected to US Vice-President JD Vance’s description of foreign professionals working in the United States on H-1B visas as “indentured servants”, calling his remarks “deeply offensive” and “unwarranted”, as New Delhi also criticized Washington’s suspension of several major technology companies from a key Green Card program.
The Ministry of External Affairs (MEA) said the US administration’s latest measures did not advance the shared ambitions of India and the United States, while emphasizing that the movement of skilled professionals benefits both economies. The remarks came a day after the Donald Trump administration announced the suspension of several technology companies from the US Permanent Labor Certification (PERM) program, which enables employers to sponsor eligible foreign workers for permanent residency
Vance made the controversial remarks on Thursday while announcing the suspension of Microsoft’s participation in the program. He alleged that the technology giant had laid off American employees while continuing to hire foreign professionals, arguing that companies were using overseas workers to undercut domestic wages.
“In other words, if you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said at a White House news conference.
He argued that H-1B workers were vulnerable because their immigration status was tied to their employment and that losing a job could force them to leave the country. He also accused companies of exploiting the system to reduce labor costs and called on Congress to reform the program.
However, the allegations concerning Microsoft’s hiring practices were not accompanied by detailed evidence at the news conference demonstrating that the company had directly replaced the laid-off American employees with H-1B workers.
Responding to the developments, the MEA stressed that the PERM program was distinct from the H-1B visa system and that the suspension did not automatically invalidate existing visas or alter the immigration status of current H-1B holders and their dependants.
“It should be noted that PERM is distinct from the H-1B visa program. The suspension of PERM applications does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents, though there could be some impact on the permanent-residency/Green Card process of eligible employees of the affected companies,” the ministry said.
The government’s clarification is significant for Indian professionals already employed in the US technology sector. While the latest restrictions do not automatically cancel their existing H-1B visas, they could delay the Green Card process for eligible employees whose employers are unable to file new labor-certification applications during the suspension.
The MEA also underlined the economic value of skilled-worker mobility, signaling India’s concern that restrictions on foreign professionals could affect the technology industry’s ability to recruit and retain talent.
The US Department of Labor announced that it was suspending Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from the PERM program. The administration cited ongoing investigations and alleged misuse of employment-based immigration processes as the basis for its action.
US Labor Secretary Keith Sonderling said the government was acting against what it described as systemic fraud and the displacement of American workers. The administration has argued that companies should priorities domestic recruitment and ensure that foreign-worker programs are not used to suppress wages.
The restrictions mark a broader expansion of the Trump administration’s scrutiny of employment-based immigration, particularly in the technology and outsourcing industries, where Indian companies have a substantial presence. PERM is an important stage in the employment-based Green Card process. Employers generally must obtain labor certification from the Department of Labor before proceeding with sponsorship for permanent residency. The process is intended to establish that employing a foreign worker permanently will not adversely affect the wages and working conditions of similarly employed US workers.
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