Trump curbs green card pathway: How Indian IT firms and workers could be affected
Four Indian IT giants are among eight tech firms suspended from a key US permanent residency programme. Analysts tell CNA the immediate business impact may be limited, but workers face greater uncertainty.
On October 8, the Trump administration suspended eight major technology companies from sponsoring foreign workers for permanent residency under the United States' Permanent Labor Certification (PERM) programme. The suspended companies include four prominent Indian IT firms - Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech - along with Microsoft, Adobe, Cognizant, and Capgemini.
The suspension came after US Labor Secretary Keith Sonderling determined the PERM programme was experiencing abuse of the immigration system. US authorities would no longer accept new applications or process pending ones under the PERM programme. In response, India's Ministry of External Affairs stated that this move did not advance the shared ambitions of the two countries, and would only affect green card applications for eligible workers, not existing H-1B visa holders.
NASSCOM, an Indian IT industry body, clarified that the suspension concerns permanent immigration and is distinct from the H-1B visa programme, which remains unaffected. Experts expressed that the immediate business impact on Indian IT firms might be limited, but prolonged restrictions could raise staffing costs and disrupt workers' plans to settle permanently in the US.
Achyuta Ghosh, an executive research leader at HFS Research, noted that these firms would likely focus on client-facing consulting, architecture, and specialized engineering, relying more on subcontractors and US-based hiring in the near future. Indian IT professionals may face a loss of a predictable path to permanent residency, rather than immediate visa cancellations, which could gradually redirect experienced tech workers towards opportunities at home and other global hubs.
Potential destinations include Singapore, the UAE, and GCCs, where tech job markets are smaller than India's. The surge in demand for AI specialists highlights the widening gap between generalist developers and specialized talent, with AI-related roles seeing a 45% rise in recruitment in the 2025-26 financial year, while overall IT hiring remained flat.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
