Major blow to Indian techies; Trump bans eight IT companies from PERM

NEW DELHI: A new move by the United States, which frequently describes India as a close ally, has dealt a potential blow to the Indian IT sector. The US administration has barred major IT companies, including Tata, Wipro, Infosys and Microsoft, from the Permanent Labor Certification (PERM) programme, a crucial stage in the employment-based green card process. The move by President Donald Trump could affect the aspirations of thousands of Indian professionals working in the United States.

The action follows allegations that foreign workers are taking away job opportunities from American citizens. The administration has also accused companies of misusing immigration programmes to recruit foreign workers. Adobe, Cognizant, HCL and Capgemini are among the other companies reportedly covered by the action. The move comes as the US administration steps up scrutiny of H-1B visa hiring practices.

PERM is a crucial step in obtaining an employer-sponsored green card. The US government's stand is that new applications will no longer be accepted and the processing of existing applications will not proceed. As a result, Indian employees relying on green cards to secure permanent residency in the United States could face uncertainty.

Meantime, the action does not automatically revoke existing H-1B visas. Indian nationals already face significant challenges due to the long waiting periods for green cards under the EB-2 and EB-3 categories. The new restrictions could extend those waiting periods further. Indian professionals are also concerned that companies may reduce green card sponsorships in the future and increase hiring of American workers. The US move is drawing attention in the context of economic and employment ties between the two countries, particularly as Washington continues to emphasise its friendly relationship with New Delhi.