The United States’ decision to suspend eight technology companies from its Permanent Labour Certification Programme (PERM) has raised concerns over the future of India’s IT services exports, with the Global Trade Research Initiative (GTRI) warning that the move signals a more protectionist approach towards foreign technology workers.
The suspension, announced on October 8, affects major companies including Tata Consultancy Services (TCS), Infosys, Wipro and HCLTech from India, alongside Microsoft, Adobe, Cognizant and Capgemini. The measure freezes pending applications and blocks new applications under the programme, which allows employers to sponsor eligible foreign workers for US permanent residency.
According to GTRI, the development could have wider implications for Indian IT companies if restrictions extend beyond green-card sponsorship to H-1B hiring, skilled-worker mobility and outsourcing arrangements. The United States accounts for 54.1% of India’s software and IT-enabled services exports, making it a critical market for the sector.
However, the current suspension is limited to the PERM programme. It does not automatically cancel existing H-1B visas or prohibit companies from submitting H-1B applications through the separate process. The immediate impact is therefore expected to centre on affected employees’ permanent-residency applications and companies’ long-term workforce planning.
The policy shift could nevertheless increase uncertainty for Indian professionals seeking permanent residency in the US and complicate staffing decisions for technology companies operating across both countries. Any additional restrictions on skilled-worker mobility could affect how Indian IT firms deploy employees at client locations and manage overseas projects.
GTRI has urged India to prepare for possible wider restrictions and reduce its dependence on the US market by diversifying export destinations and expanding domestic delivery capabilities. Strengthening other international markets could help Indian technology companies manage regulatory uncertainty and sustain services-export growth.
The development also comes amid broader tensions over trade and immigration policies between the two countries. India has emphasised the economic benefits of skilled-worker mobility, while the US administration has argued for tighter scrutiny of foreign-worker programmes.
For India’s IT industry, the key concern is whether the action remains confined to green-card sponsorship or forms part of a broader tightening of rules affecting foreign technology workers. The scope of any future measures will determine the extent of their impact on Indian services exports, workforce deployment and cross-border business operations.