The Karnataka IT minister said suspending several companies from the labour-certification programme could complicate Indian outsourcing firms' US operations while prompting businesses to place more research and development in India.
The Donald Trump administration has suspended Microsoft, Adobe and six major IT companies from the Permanent Labour Certification (PERM) programme, an important step in many employment-based green-card applications. US officials linked the action to investigations and alleged violations. The move does not by itself cancel visas or green cards that have already been issued.
Karnataka minister Priyank Kharge said the restrictions could raise costs for Indian services companies in the United States, make it harder to retain experienced specialists and limit the ability to send staff to client sites. He set out that assessment in a post on X on October 9.
Kharge also argued that companies might find it more practical to keep engineers in India and assign more complex work there. That could include expanding global capability centres and moving research, engineering and product development work. This is the minister's projection, not a confirmed change in companies' investment plans.
PERM requires employers to show that no qualified US worker was available for a permanent position and serves as a step in the process for foreign workers seeking permanent residency. The Associated Press reported that the affected companies include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, as well as Microsoft and Adobe. Vice President JD Vance accused the companies of replacing US workers with foreign employees, while the companies did not immediately respond to AP's requests for comment.