India Responds to “Indentured Servants” Label for H-1B Visa Holders

India Rejects “Indentured Servants” Label for H-1B Visa Holders Amidst U.S. Official’s Remarks

India’s Ministry of External Affairs has strongly condemned remarks made by U.S. Vice President JD Vance, who described H-1B visa holders as “foreign indentured servants.” The ministry called the language “deeply offensive” and “unwarranted,” noting that the phrase carries painful colonial and historical associations. This strong rebuke highlights a disagreement over the portrayal of skilled foreign professionals and their contributions to the U.S. economy.

The controversy arose when Vance, speaking at a U.S. news conference on October 8, 2026, linked foreign worker hiring to lower pay and layoffs of American employees. He alleged that companies use H-1B visas to reduce labor costs, claiming that H-1B employees earn significantly less than their American counterparts in similar roles. Vance specifically stated that H-1B workers might earn $20,000 less than a U.S. citizen in the same position, and those brought in by foreign outsourcing firms could earn $48,000 less. He further accused corporations of profiting by undercutting American wages.

Vance pointed to Microsoft as an example, alleging that the company laid off 6,000 American workers while simultaneously obtaining over 6,300 H-1B visas and nearly 3,000 green cards in the preceding year. He characterized this situation as a “scandalous system.”

India’s Ministry of External Affairs countered this narrative by emphasizing that Indian professionals in the United States are highly educated and skilled individuals who make significant contributions to the U.S. economy and its innovation ecosystem. The ministry argued that such descriptions are inaccurate and ignore the reality of these professionals’ qualifications and impact. It also highlighted that generations of immigrants, particularly Indian professionals, have played a role in the economic growth, enterprise, and innovation within the United States.

The ministry further asserted that the mobility of talent across borders benefits both nations through advancements in research and the creation of jobs. This exchange occurred as a separate action by the U.S. Department of Labor raised questions about green-card processing for several companies.

U.S. Labor Department Halts Processing for Eight Companies

On October 8, 2026, the U.S. Department of Labor announced a suspension of Permanent Labor Certification (PERM) processing for eight companies. These companies include major tech and outsourcing firms such as Microsoft, Adobe, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant, and Capgemini. Labor Secretary Keith Sonderling cited multiple ongoing federal investigations as the reason for this action.

The PERM process is a critical step in the employment-based green-card application. It is important to note that this labor halt is distinct from the H-1B visa program itself. The Ministry of External Affairs clarified that this processing suspension does not, on its own, invalidate existing H-1B visas or alter the immigration status of workers or their dependents.

While the immediate immigration status of H-1B workers is not affected, eligible employees at the targeted companies might experience delays in their green-card applications. This risk is particularly relevant for those whose path to permanent residency relies on the PERM certification. The ministry reiterated that the employer’s labor certification process is the affected step, not the H-1B visa framework itself.

India continues to stress the mutual benefits derived from the movement of skilled professionals between the two countries. This talent mobility is seen as a driver for research, innovation, and job creation, underscoring the value of such exchanges even as the U.S. processing suspension creates potential delays for green-card cases at the named employers.

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