US Green Card Suspension Seen Having Limited Impact on Indian IT

Indian IT companies are unlikely to face immediate business disruptions following the US suspension of the Permanent Labor Certification (PERM) programme, analysts said on Friday. The move restricts a key pathway for foreign workers seeking permanent residency in the United States. However, major Indian technology firms have reduced their dependence on this route and expanded local hiring in recent years.

India’s foreign ministry criticised the move, saying it does not support the shared ambitions of both countries and highlighting the contributions of skilled Indian professionals to the US economy. Industry body Nasscom said relatively few workers transition from H-1B visas to permanent residency through PERM. Tata Consultancy Services also said it did not expect the suspension to affect its workforce strategy or client engagements, citing low application numbers.

Despite the limited immediate impact, analysts warned that prolonged uncertainty could affect employee retention, increase hiring and compliance costs, and weigh on investor sentiment. Indian IT companies already face pressure from AI-driven disruption and tighter US immigration policies. Although the Nifty IT index rose around 3% on Friday, analysts said regulatory uncertainty could continue to challenge the sector in the coming months.

Pic courtesy: google/ images are subject to copyright