US H1B Visa Row: Which Indian IT Companies, Employees Will Be Hit Hardest by Green Card Freeze? Know Alternative Options

The Donald Trump administration’s tightening of US immigration rules is creating fresh uncertainty for Indian technology professionals, particularly those seeking employment in America or planning to transition from temporary work visas to permanent residency. A suspension of green card processing for several major technology companies, combined with stricter H-1B visa policies, could affect recruitment, career mobility and the future staffing strategies of Indian IT firms.

India has criticised US Vice President JD Vance’s remarks about foreign professionals, calling his description of Indian workers “deeply offensive”, as the Donald Trump administration suspends green card-related applications for several major technology companies, including Tata Consultancy Services (TCS), Infosys, Wipro and HCLTech.

The developments have raised concerns about the future of skilled Indian professionals working in the United States and the impact of tighter immigration rules on India-US economic ties. In a statement on October 9, 2026, India’s Ministry of External Affairs (MEA) defended Indian professionals, stressing that their contributions to the US economy, research and innovation should not be overlooked. 

Why Did India Object to JD Vance’s H1B Visa Remarks?

Vance criticised companies for bringing foreign workers into the US while laying off American employees. During the announcement of the latest restrictions, he described foreign workers as “indentured servants” and argued that some businesses use overseas hiring to reduce labour costs and replace domestic employees.

India rejected this characterisation, saying Indian professionals in the US are highly educated and skilled contributors to the country’s economy and innovation ecosystem.

Which Indian IT Companies Are Affected by the Green Card Freeze?

On October 8, 2026, the US government suspended eight technology companies from participating in the employment-based Permanent Labor Certification programme, known as PERM. The companies are Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.

The US Department of Labor said it would stop accepting new applications and processing pending cases for the affected employers while investigations into alleged fraud and compliance violations continue. Officials have alleged that the programme was being misused to replace American workers with foreign employees. The allegations do not, by themselves, establish wrongdoing by each company. 

PERM is an important stage in the employment-based green card process. Employers generally need labour certification before sponsoring eligible foreign employees for certain categories of permanent residency.

The suspension does not automatically cancel existing H-1B visas. However, affected employees could face delays in securing permanent residency, particularly those whose immigration plans depend on employer-sponsored applications.

Why Indian IT Professionals Could Face the Biggest Impact

The restrictions could affect Indian professionals differently depending on their job roles, salaries, visa status and stage of their immigration process.

According to The Times of India, early-career technology workers and employees of IT services companies that depend on large-scale staffing could face greater pressure under the changing immigration framework. Senior engineers and highly paid specialists may be relatively better positioned as US policy increasingly emphasises higher-skilled, higher-paid employment. 

The H-1B visa allows eligible foreign professionals to work temporarily in the US, generally for up to six years, subject to applicable rules and extensions. PERM, by contrast, is a labour certification process linked to certain employment-based green card applications. The distinction matters because a worker may retain valid H-1B status while facing uncertainty over permanent residency.

TCS Hiring Plans and the Future of Indian IT Professionals in US

TCS has said the green card programme suspension is not expected to materially affect its US workforce strategy or client engagements. The company reiterated its plan to recruit 15,000 additional employees in the US over five years, highlighting its focus on local hiring and campus recruitment. 

Indian technology companies have also been expanding local recruitment and offshore delivery operations to reduce their dependence on visa-based staffing. Industry experts say the latest restrictions could accelerate this trend, encouraging firms to move more software development, testing, artificial intelligence and other technology work to India.

This could create opportunities for domestic engineers and expand global capability centres, although the extent of any shift will depend on business demand and future US policy. 

What Lies Ahead amid Tighter H-1B Rules for Indian Employees?

The combined effect of green card processing restrictions and tighter H-1B rules could reshape how Indian IT companies recruit, deploy and retain skilled workers. For professionals already in the US, the immediate concern is whether delays in permanent residency will affect their long-term plans. For aspiring applicants, uncertainty over immigration pathways could influence decisions about studying, working or building careers in America.