New Delhi, Oct 9 (IANS) India on Friday said that it is aware of the decision announced by the US Department of Labour concerning the Permanent Labour Certification (PERM) programme for some companies, noting that suspension of PERM applications does not impact the validity of existing H-1B visas or the status of H-1B visa holders and their dependents. On the announcement made by the US Department of Labour, Ministry of External Affairs (MEA) noted that the suspension of PERM could have some impact on the permanent residency/Green Card process of the eligible employees of the affected companies. It stated that the steps announced by the US do not advance the shared ambitions of both countries.

"We are aware of the US Department of Labour’s decision concerning the Permanent Labour Certification (PERM) programme for certain companies. It should be noted that PERM is distinct from the H-1B visa programme. The suspension of PERM applications does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents, though there could be some impact on the permanent-residency/Green Card process of eligible employees of the affected companies," the MEA stated.

"It should also be clear that talent mobility adds value to both economies. While it creates opportunities for Indians, it equally helps US companies with cutting-edge talent, innovation, research, productivity, competitiveness and job creation, besides creating shareholder wealth in the US. This is therefore an area of tremendous mutual benefit for the two countries and our expectation is that all stakeholders in this process can appreciate this fact. The steps announced by the US do not advance the shared ambitions of both countries," the statement added.

The MEA slammed US Vice President JD Vance for his remarks in this context, terming them "unwarranted" and said that the statement ignores the fact that Indian professionals in the US are highly educated and skilled contributors to the economy and innovation ecosystem of the US. "We have also seen some comments in this context by the US Vice President. We believe that such descriptions are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its economy and innovation ecosystem. Indeed, the history of the United States itself has been shaped by generations of immigrants whose labour, enterprise and innovation have contributed to its growth and prosperity," the MEA said.

"Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive. We continue to follow developments around this issue," it added. India's statement comes after the Trump administration on Thursday announced the suspension of a key employment-based green card process for eight major technology and outsourcing companies, including India's Infosys, Tata, Wipro and HCL, as JD Vance launched a sweeping crackdown on alleged visa fraud.

The action also covers Cognizant, Capgemini, Microsoft and Adobe. It prevents the companies from filing new permanent labour certification applications and halts the processing of pending applications under the programme. US Labour Secretary Keith Sonderling announced the decision at a press conference led by Vance, saying the action followed ongoing criminal and federal investigations.

"Due to ongoing criminal investigations led by the Department of Labour's Inspector General Anthony DiEsposito, who will get into this shortly, I am hereby suspending from the Permanent Labour Certification Program some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini," Sonderling said. He added that Microsoft and Adobe were also being suspended because of multiple active federal investigations. "We will not accept or process any pending permanent labour certification applications involving these companies," he said.

The PERM is a crucial step for many employers seeking employment-based permanent residence for foreign workers. Sonderling said the companies named in the action had collectively requested nearly three million foreign workers since 2009. They had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications, according to figures he presented. Vance accused employers of using the H-1B programme to replace American workers with lower-paid foreign employees.

"The H-1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers," he said. He singled out Microsoft, alleging that the company had laid off 6,000 American workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. Vance said the administration wanted companies to change their hiring practices rather than leave the American market.

Asked whether the suspension was temporary or permanent, he said, "The suspension of PERM is gonna last as long as it needs to." He added that the administration had tools to continue the suspension indefinitely but wanted companies to improve their behaviour.

--IANS