Trump's green card curbs test Indian tech workers' American dream

For countless individuals in India, the journey toward achieving their professional dreams has typically followed a well-trodden path: earning an engineering degree, securing a job in technology services, obtaining a work visa for the United States, and ultimately transitioning to permanent residency through a green card. However, this route is now facing significant obstacles.

In early October, the U.S. government announced a suspension affecting eight technology companies, including major players like Microsoft, Infosys, Tata Consultancy Services (TCS), Wipro, and HCL Technologies. These companies will no longer be able to hire skilled international workers permanently through the Permanent Labor Certification Program (PERM), a crucial pathway for many foreign workers seeking green cards.

This development poses a serious challenge for many Indians, who represent a significant portion of H-1B visa holders—a temporary visa for specialized workers. These individuals often rely on the PERM process to secure permanent residency and, eventually, U.S. citizenship. The latest restrictions align with former President Donald Trump's initiative to impose stricter regulations on skilled immigration, prompting concerns about potential repercussions for American businesses. However, experts suggest that the overall impact on these companies may be limited due to their ongoing adjustments to the evolving immigration landscape.

The National Association of Software and Service Companies (Nasscom), representing India's $300 billion technology sector, has indicated that Indian firms are increasingly hiring locally and reducing their reliance on H-1B visas. "As a result, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is relatively limited," the organization stated.

Wipro reported that over 80% of its U.S. workforce is made up of local hires, while TCS noted that its PERM applications have dropped to single digits in the past two years. Microsoft also indicated that its H-1B visa applications primarily aim to retain current employees rather than recruit new talent.

A report from Business Standard highlighted a dramatic decline in TCS's PERM applications, plummeting from 513 in 2024-25 to just two in 2025-26. No applications were recorded for Infosys and Wipro during the same period. Attempts by the BBC to reach the eight affected companies for comments on how they were addressing the impact of these restrictions went unanswered.

According to HDFC Securities, the effect on these tech firms will be minimal, as PERM-related jobs constitute a small fraction of their overall revenue, even if they are replaced by higher-paid American workers.

However, the implications of the U.S. government's decision extend beyond business considerations. A senior executive from one of the affected companies, speaking anonymously, conveyed that while the new PERM restrictions would not cripple operations, the human impact is profound. "Many individuals we know are now in limbo, having spent years in the U.S. without progress on their green card applications. Even if they are willing to return to India, their children, who have grown up here, are resistant to that idea," he explained.

Recent policy changes have heightened uncertainty and exacerbated negative sentiments towards Indian immigrants and H-1B visa holders. Research conducted by Stop AAPI Hate has revealed a surge in anti-South Asian rhetoric online since the 2024 U.S. elections, with Indian nationals frequently targeted.

U.S. Vice President JD Vance, during the announcement of the PERM suspension, referred to foreign professionals on H-1B visas as "foreign indentured servants." Although he later acknowledged that his choice of words was flawed, the comment drew strong rebukes from India's foreign ministry, which labeled it "unwarranted" and "deeply offensive" due to its colonial implications.

Immigration attorney Poorvi Chothani pointed out that many individuals moved to the U.S. seeking better opportunities, often incurring significant debt for their education and career development. With tightening regulations, these individuals face dwindling options and increased financial burdens.

Experts predict that as residency pathways become scarcer, some individuals may reconsider their long-term plans in the U.S., while others may decide against relocating altogether. Ahmet Gulek, a Postdoctoral Fellow at Stanford's Immigration Policy Lab, noted that while alternative residency avenues exist, they may not be viable for everyone. Though transitioning to companies not affected by the suspension is a possibility, he cautioned that uncertainty regarding their willingness to hire immigrants persists, particularly amid fears of backlash.

Moreover, the tech industry is currently undergoing significant transformations, characterized by layoffs, cost-cutting measures, and the rapid integration of artificial intelligence, making job changes more challenging.

Despite the obstacles, there are still pathways to obtain a U.S. green card, including options for those with exceptional achievements or investments of at least $800,000 in qualifying U.S. businesses. However, Gulek warned that some of these categories could also face scrutiny in the future.

Chothani mentioned that some individuals are so determined to remain in the U.S. that they are considering the EB-5 investor route, although many may lack the necessary funds to invest. As of December 2025, nearly one million Indian nationals were awaiting employment-based green cards, accounting for 79% of all pending applications, according to the National Foundation for American Policy (NFAP). The organization projects that wait times for highly skilled Indians seeking labor certification or employment-based immigration could vary from five to 179 years, depending on the visa category.

Like other recent immigration initiatives, the suspension of PERM applications may face legal challenges in federal courts. Nevertheless, these developments illustrate a growingly restrictive environment for those aspiring to study, work, or settle in the United States.