The Indian government on Friday criticized remarks by U.S. Vice President JD Vance that described foreign workers on H-1B visas as “indentured servants,” calling the comments ‘unwarranted’ and ‘painful.’
The U.S. Department of Labor simultaneously announced it would suspend Microsoft, Adobe, and six major Indian IT firms—including Cognizant, Infosys, and Tata Consultancy Services—from its Permanent Labor Certification program. The suspensions prevent these companies from applying for permanent residency for their H-1B visa employees. Around 70% of H-1B beneficiaries in 2025 were born in India, according to official data.
U.S. Policy Shift Targets H-1B Visa Program
Vance, speaking Thursday, reiterated the Trump administration’s stance that U.S. companies should prioritize hiring American workers. He stated that firms cannot lay off American employees and replace them with foreign workers on H-1B visas. Vance specifically accused Microsoft of replacing 6,000 laid-off workers with H-1B visa holders, though the company has not publicly addressed the claim.
The Department of Labor’s action follows a broader review of labor certification practices, aimed at ensuring compliance with U.S. hiring standards. The suspensions apply to companies accused of displacing domestic workers with foreign labor under the H-1B program.
India Rejects Rhetoric, Affirms Worker Contributions
India’s Ministry of External Affairs issued a statement Friday calling Vance’s remarks ‘deeply offensive’ and highlighting the ‘painful historical and colonial legacy connotations’ of the term “indentured servants.” The ministry emphasized that Indian professionals in the U.S. are highly skilled contributors to the American economy and innovation ecosystem.
The statement assured Indian H-1B visa holders that existing visas and their dependents’ statuses remain unaffected by the U.S. suspensions. It added that talent mobility benefits both economies, while criticizing the policy shift as counterproductive to shared ambitions between the two nations.
The Indian IT industry body NASSCOM noted that companies have reduced dependence on H-1B visas in recent years, expanding domestic hiring and global talent acquisition strategies. Affected firms, including Capgemini, Wipro, and HCL, are reviewing the implications of the suspensions.
Background: H-1B Visa Program and Recent Changes
The H-1B visa is a non-immigrant work visa that allows U.S. employers to hire foreign professionals in specialized fields, such as technology and engineering. India accounts for the majority of H-1B beneficiaries, with nearly 70% of recipients in fiscal year 2025 originating from the country.
The U.S. Department of Labor’s Permanent Labor Certification program is a prerequisite for employers seeking to sponsor foreign workers for green cards. The recent suspensions mark a tightening of enforcement under the current administration, which has framed the H-1B program as a potential avenue for displacing American workers.
Critics of the program argue it has been exploited to underpay foreign workers or replace domestic labor at lower costs, while supporters contend it fills critical gaps in the U.S. tech workforce. The latest actions signal a shift toward stricter oversight of the program’s compliance with labor laws.