The Ministry of External Affairs said on Friday that Vance’s characterisation disregarded the contribution of highly qualified professionals from India to America’s economy, technological development and innovation. It objected particularly to terminology associated with colonial exploitation and historical injustices.
The diplomatic rebuke followed Washington’s decision to suspend eight major technology companies from a programme enabling employers to sponsor foreign workers for permanent residency. The affected companies include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
New Delhi said the restrictions threatened mutually beneficial economic cooperation and failed to advance the shared ambitions of the two countries.
Vance defended the Trump administration’s action by accusing technology companies of exploiting immigration arrangements to replace American employees with lower-paid overseas professionals. He argued that employers should recruit qualified domestic workers rather than rely on what he called foreign indentured servants.
The vice president alleged that H-1B employees earned substantially less than comparable American workers, claiming the wage differences allowed corporations to reduce labour costs while displacing domestic employees.
Those allegations remain contested, with affected employers defending their recruitment practices and compliance with immigration requirements.
India’s foreign ministry rejected the broader characterisation of overseas professionals, stressing that generations of immigrants had contributed to America’s prosperity through their skills, enterprise and labour.
It said the terminology employed by Vance carried painful historical and colonial associations, making its use particularly objectionable when referring to qualified professionals working legally in the United States.
The ministry also emphasised that international talent mobility benefited both economies, enabling American businesses to access specialised expertise while supporting innovation, research, productivity, competitiveness and employment.
Its intervention represents an unusually direct public criticism of a senior member of President Donald Trump’s administration amid disagreements over immigration policy and economic cooperation.
The immediate dispute centres on the Permanent Labor Certification programme, commonly known as PERM, through which employers obtain certification before sponsoring eligible foreign employees for employment-based permanent residence.
The US Department of Labor has suspended the processing of applications involving the eight companies, citing concerns about compliance and the protection of American employment opportunities.
The restrictions affect an important pathway towards permanent residency but do not automatically invalidate temporary work authorisations.
New Delhi specifically clarified that the suspension does not independently affect existing H-1B visas or the lawful status of visa holders and their dependants. However, eligible employees pursuing green cards through the affected employers could encounter disruption.
The distinction matters because H-1B visas permit temporary employment in specialised occupations, whereas PERM certification forms part of the separate process through which employers sponsor workers for permanent residence.
The US administration maintains that stronger enforcement is necessary to prevent employers from circumventing domestic recruitment requirements and depressing wages.
Microsoft has disputed suggestions that its immigration practices systematically disadvantage American workers. The company has maintained that most of its workforce is American and that a substantial proportion of its H-1B filings concern existing employees rather than new overseas recruits.
The dispute has also raised questions about whether restricting permanent residency could leave some foreign professionals more dependent on individual employers, potentially weakening their bargaining position.
Technology companies from India have nevertheless sought to reassure investors that the immediate commercial consequences may be manageable.
Tata Consultancy Services said its limited reliance on PERM applications over the preceding two years meant the suspension was unlikely to materially alter its workforce strategy. The company has increasingly emphasised recruitment within the United States.
Industry analysts have similarly indicated that greater local hiring has reduced dependence on immigration sponsorship among several large technology services providers, although uncertainty over future recruitment and employee retention remains.
The restrictions arrive as technology businesses confront changing demand for specialised workers, rising compliance costs and increasing scrutiny of employment practices.
For affected employees, the practical consequences will depend on their immigration circumstances, the progress of existing applications and whether alternative sponsorship arrangements are available.
The labour certification process ordinarily requires employers to demonstrate that sufficiently qualified and available American workers cannot fill the advertised positions and that employing foreign nationals will not adversely affect prevailing wages or working conditions.
