In brief
The Trump administration’s decision to suspend the Permanent Labor Certification (PERM) program for eight major tech firms has thrown thousands of Indian H‑1B workers into uncertainty. While firms say the impact on business revenue is small, the halt jeopardizes the green‑card path that many Indian professionals rely on. Experts warn that the move could force talent out of the US or trigger a shift of jobs back to India, while also sparking rising anti‑Asian sentiment online. Alternatives such as EB‑5 investment or employer‑sponsored visas may help but come with steep costs and legal hurdles.
In a move that will alter the career trajectories of millions of Indian tech professionals, the Trump administration has suspended the PERM program for eight global tech firms, including Microsoft, Infosys, Tata Consultancy Services, Wipro and HCL Technologies.
Linked to the broader shift toward a more protectionist immigration stance, the new ruling freezes all new and pending PERM applications. PERM is the green‑card pathway that thousands of Indian H‑1B visa holders depend on after finishing their initial visa renewal.
"The 8% of the tech workforce that comes to the United States on H‑1B visas normally counts on PERM to secure permanent status. That safety net is now gone," says Priyanka Menon, a senior analyst at the Institute for Policy Research. "The immediate consequence is a hit to the American dream for Indian tech talent.”
Companies in the United States have largely responded by down‑scaling their use of foreign workers. According to data from the National Federation of Indian Professionals, Wipro’s workforce in the US is now over 80% locally hired, and Tata Consultancy Services’ PERM filings have dropped from 513 in 2024 to two in 2025‑26.
That said, the shutdown has a ripple effect on the 79% of the U.S. green‑card backlog that comes from India. The National Foundation for American Policy estimates that Indians waiting for employment‑based green cards are facing wait times from five to 179 years, depending on the visa tier.
The restriction is also a blow to the personal lives of those currently in the United States. One IT professional, speaking to BBC only under anonymity, described how he and his children are stuck “in a limbo where their applications have stalled, and there’s no clear path back to India because they’ve built a life here.”
The policy has fueled online hostility as well. A report from Stop AAPI Hate found a sharp spike in anti‑South Asian sentiment on social media since Jan. 2024, with H‑1B visa holders often singled out.
Vice President JD Vance’s remarks describing H‑1B workers as “foreign indentured servants” added fuel to the fire, drawing condemnation from India’s foreign ministry, which called the language “offensive and colonial.” The comments were later repudiated but the damage to the sociopolitical climate endured.
Faced with fewer visa options, some Indian professionals are now looking toward alternative immigration pathways. The EB‑5 investor visa requires a minimum investment of $800,000 in a U.S. enterprise, a hurdle many cannot meet. Those who are academically or professionally exceptional may qualify for visas that bypass PERM, but they remain a small minority.
Ultimately, the PERM suspension underscores a trend toward a tightening of U.S. immigration policy and a re‑evaluation of how much foreign talent companies are willing to bring in. While Indian tech expertise is still in high demand, the route to long‑term U.S. residency is becoming increasingly scarce, forcing talent to rethink the conventional “up‑the‑ladder” story embedded in the tech industry.
