New Delhi defends contributions of Indian professionals to the U.S. economy and clarifies impact of American restrictions on employment-based immigration
India has strongly criticized U.S. Vice President JD Vance for describing foreign H-1B visa workers as “indentured servants,” calling the remarks deeply offensive and dismissive of the contributions made by skilled Indian professionals to the American economy.
The Ministry of External Affairs (MEA) issued a statement on Friday, October 9, expressing concern over Vance’s choice of language and emphasizing its historical associations with colonial exploitation and forced labour.
Indian officials argued that the characterization failed to acknowledge the qualifications, expertise and economic contributions of Indian professionals working in the United States.
The ministry highlighted the longstanding role of immigrants in shaping American economic development through innovation, entrepreneurship and skilled employment.
New Delhi’s response followed remarks made by Vance during a Thursday news conference focused on alleged visa fraud and the employment practices of foreign outsourcing companies.
The U.S. vice president accused certain corporations of using the H-1B visa programme to replace American employees with lower-paid foreign workers, arguing that the practice undermined domestic wages and employment opportunities.
Vance claimed that H-1B visa holders earned approximately $20,000 less than American citizens performing comparable jobs. He further alleged that the wage difference increased to $48,000 for workers employed through foreign outsourcing firms.
The vice president argued that some companies benefited financially by hiring lower-cost foreign workers while laying off American employees.
He also questioned whether certain foreign workers should have been permitted to enter the United States under existing employment arrangements.
India rejected the broader characterization of skilled foreign professionals as a burden on the American workforce.
The MEA maintained that Indian professionals have contributed significantly to American research, technological development, business productivity and economic competitiveness.
Officials emphasized that skilled migration has historically benefited both countries by facilitating knowledge exchange, strengthening industries and supporting innovation.
The diplomatic disagreement comes amid additional restrictions announced by the U.S. Department of Labor involving several major technology and consulting companies.
U.S. Labour Secretary Keith Sonderling announced the suspension of certain companies from the Permanent Labor Certification programme, commonly known as PERM, citing multiple ongoing federal investigations.
The affected companies reportedly include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe.
The PERM programme is an important component of the employment-based permanent residency process, requiring employers in applicable cases to obtain labour certification before sponsoring foreign workers for green cards.
According to Sonderling, the companies collectively submitted requests involving nearly three million foreign workers since 2009, receiving more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
The labour secretary alleged that these employment arrangements had displaced American workers, although the figures cited do not independently establish that each foreign hire resulted in the loss of a domestic job.
Responding to concerns among Indian workers and their families, the MEA clarified that the PERM programme operates separately from the H-1B visa system.
Indian officials emphasized that suspending an employer’s participation in PERM does not automatically invalidate existing H-1B visas or alter the lawful immigration status of visa holders and their dependents.
However, the ministry acknowledged that the restrictions could affect permanent residency applications for eligible employees sponsored by the companies involved.
This distinction is particularly important for Indian technology professionals, many of whom rely on employer-sponsored immigration pathways to obtain long-term residency in the United States.
The latest developments have also raised concerns about the broader direction of American immigration policy toward international students and skilled foreign workers.
The PERM restrictions were announced shortly after the U.S. Department of Homeland Security proposed additional fees for international students seeking Optional Practical Training (OPT), a programme allowing eligible F-1 visa holders to gain practical work experience related to their academic studies.
American authorities have presented the proposed measures as part of efforts to strengthen immigration oversight, protect domestic employment and address alleged abuses within the visa system.
India, however, has expressed concern that the restrictions could undermine the economic and technological cooperation that benefits both countries.
The MEA argued that Indian professionals contribute to job creation, corporate competitiveness, research and shareholder value within the United States.
New Delhi also emphasized that international mobility of skilled workers should be recognized as an important component of bilateral economic relations rather than viewed exclusively through the lens of domestic labour competition.
The ministry indicated that the newly announced American measures were inconsistent with the broader ambitions shared by India and the United States for stronger economic and technological cooperation.
The dispute highlights growing differences between Washington’s efforts to tighten employment-based immigration rules and New Delhi’s emphasis on preserving opportunities for highly skilled Indian workers abroad.
For Indian professionals currently employed in the United States, the immediate implications depend on their immigration status, employer and stage in the permanent residency process.
While existing H-1B visas are not automatically affected by the PERM suspensions, employees pursuing employer-sponsored green cards through the affected companies could encounter additional uncertainty.
As both countries continue to maintain extensive commercial and technological ties, the disagreement places renewed attention on the role of skilled immigration in their economic relationship and the future of employment opportunities for Indian professionals in the United States.
