India criticises US immigration curbs on IT firms

India criticised the US government's decision to suspend several Indian IT companies from a foreign worker programme, saying the move does not support the two countries' shared goals.

Washington announced on Thursday that it was suspending several Indian IT companies, including Infosys and Wipro, from the permanent labor certification programme. The programme is a step in a process that allows employers to apply for permanent residency for foreign workers.

India's foreign affairs ministry said on Friday that the decision would not affect the validity of existing H-1B visas, a programme used by India's $315-billion IT industry. It said the US move could affect the permanent residency, or green card, process for eligible employees.

The ministry said talent mobility creates opportunities for Indians and helps US companies. It said the US steps “do not advance the shared ambitions of both countries”.

The ministry also criticised comments by US Vice President JD Vance, who referred on Thursday to workers hired by foreign outsourcers as “indentured servants” and suggested they force Americans out of jobs and replace them with people who should not be in the United States.

India's foreign ministry called the comments “unwarranted” and said Indian professionals in the United States are skilled contributors to the US economy and innovation system. It said terminology with historical and colonial connotations was offensive.

India's IT industry downplayed the impact of the US decision. Tata Consultancy Services said its labour certification programme applications had been in the single digits in the last two years.

The dispute comes amid tension in US-India relations over President Donald Trump's tariffs and New Delhi's purchases of Russian oil. The two countries agreed to an interim understanding on a trade deal in February, but negotiations have continued for months, and India's finance minister said earlier this week that talks had hit a “plateau”.