US Green Card Freeze for Eight Tech Firms Unlikely to Hurt Indian IT Companies Immediately

The Trump administration’s decision to suspend eight major technology companies from the US Permanent Labour Certification (PERM) programme is unlikely to cause an immediate financial impact on Indian IT firms, but could create uncertainty for Indian professionals seeking permanent residency.

The companies affected include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. The US Department of Labour has stopped accepting new PERM applications and processing pending applications involving these companies.

PERM is an important step in the employment-based green card process, through which employers sponsor eligible foreign workers for permanent residency. The suspension does not automatically cancel existing H-1B visas, but could delay the green card process for affected employees.

According to ICICI Securities, Indian IT companies accounted for less than 2 per cent of PERM applications filed between October 2024 and September 2025. Analysts, therefore, expect limited immediate financial consequences, although prolonged uncertainty could affect employee retention and investor sentiment.

TCS said the decision would not affect its workforce strategy or client engagements, citing only single-digit PERM applications over the previous two years. Industry body Nasscom also noted that technology companies had reduced their dependence on H-1B visas while expanding local hiring in the US.

India’s Ministry of External Affairs criticised the remarks surrounding the decision, stating that Indian professionals are highly skilled contributors to the American economy and innovation ecosystem. The response followed allegations by US Vice President JD Vance that companies were using the programme to replace American workers and suppress wages.

The move comes amid wider challenges for India’s $315-billion IT industry, including artificial intelligence-led disruption and tighter immigration policies. Analysts warn that prolonged restrictions could increase hiring and compliance costs as companies rely more on local US talent and subcontracting.

While the immediate financial impact may remain limited, uncertainty over permanent residency could influence the ability of Indian IT firms to attract and retain skilled professionals in the United States.