Congress attacks Modi over US visa crackdown as PERM suspension sparks political row

The US government's sudden decision to suspend major technology companies from its permanent residency programme has triggered a fierce political row in India. The opposition Congress party has accused Prime Minister Narendra Modi of being too compromised by domestic scandals to protect Indian IT workers.

On Thursday, the US Anti-Fraud Task Force froze applications for the Permanent Labour Certification (PERM) programme—the initial step for obtaining a green card—for several top outsourcing firms. The list of suspended companies includes Indian giants Infosys, Tata Consultancy Services (TCS), Wipro, and HCLTech, alongside multinational firms like Microsoft and Cognizant.

Congress claims Modi is under siege

The move immediately became ammunition for the opposition in New Delhi. Jairam Ramesh, the Congress general secretary in-charge of communications, claimed on Friday that India has several avenues to retaliate under existing laws, such as the Digital Personal Data Protection Act. However, he argued that Prime Minister Modi would fail to act because he is "under siege" over "GyaneshGate"—a reference to opposition demands for Chief Election Commissioner Gyanesh Kumar to resign over alleged electoral roll irregularities.

Ramesh also linked the US action to recent domestic concessions, claiming the Indian government had recently tried to appease US President Donald Trump by introducing UPI merchant discount rate (MDR) charges to benefit American companies. "Appeasement of bullies never pays," Ramesh wrote on X.

New Delhi labels Vance remarks "deeply offensive"

While the opposition attacked the Prime Minister's silence, India’s Ministry of External Affairs issued a sharp public rebuke to Washington. The ministry described remarks made by US Vice President JD Vance during the announcement as "deeply offensive" and carrying "painful historical and colonial legacy connotations."

Vance had accused tech companies of operating "visa mills" and using H-1B visa holders as "foreign indentured servants" to undercut American wages. In response, the Ministry of External Affairs defended Indian tech professionals as "highly educated and skilled contributors" who have helped build the US economy. The ministry warned that the curbs "do not advance the shared ambitions" of both countries.

The ministry also sought to reassure nervous professionals, noting that the PERM freeze does not directly affect the validity of existing H-1B visas, though it will slow down the green card process.

Tech sector reacts to US immigration shift

Within the tech industry, reactions to the US crackdown have been mixed. Sridhar Vembu, the founder of software company Zoho, urged Indian professionals in the US to pack their bags and return home. Writing on X, Vembu said that while Indians have built America's technological strength, "a big part of America no longer wants us." He described the current political climate as a choice between a "hard right" and a "woke left" where Indian workers are mere bystanders.

In contrast, India's largest IT exporter, TCS, downplayed the business impact of the US move. In a stock exchange filing, the company stated that it had submitted only a "single-digit" number of PERM applications over the past two years. TCS said its US strategy focuses on hiring local staff and that it still plans to recruit an additional 15,000 American workers over the next five years.