‘Steps announced do not advance shared ambitions of both countries’: India on US Department of Labour’s announcement
India responded to the US Department of Labour's suspension of the PERM program for certain companies, noting it impacts Green Card processes but not H-1B visas. The MEA criticized the move, stating it harms mutual interests. Affected companies include Infosys, Tata, Wipro, HCL, Cognizant, Capgemini, Microsoft, and Adobe. US officials cited ongoing investigations and alleged visa fraud.
How this was made

The 30-second read
Why it matters
Regulatory action directly targets the green‑card process for foreign workers, creating uncertainty for affected companies' US talent pipelines and potentially pressuring their stock prices.
Market read
The suspension could lead to short‑term downside risk for listed IT services firms, especially those heavily reliant on foreign talent in the US.
What to watch
Potential for companies to shift to alternative visa programs or increase domestic hiring.
Background
The US Department of Labor announced a suspension of PERM applications for several major IT outsourcing and software firms, citing ongoing investigations into alleged visa fraud.
Ticker impact
US Dept of Labor suspended PERM applications for Infosys, affecting its green‑card pipeline for US employees.
likely pressure as market prices in the PERM suspension risk
Regulatory block on a key immigration process directly impacts Infosys' US staffing strategy.
Wipro (WIT) is listed as a company whose PERM applications are suspended, affecting its US hiring plans.
likely pressure as market factors in immigration restrictions
Direct regulatory impact on Wipro's US talent acquisition.
Cognizant (CTSH) is among firms hit by the PERM suspension, limiting its ability to secure green cards for US staff.
likely pressure as investors factor in hiring constraints
PERM suspension directly affects Cognizant's staffing model.
Microsoft (MSFT) is named in the PERM suspension, potentially affecting its ability to sponsor green cards for US hires.
moderate pressure as investors watch immigration constraints
Regulatory action touches Microsoft’s hiring, though scale may limit effect.
Adobe (ADBE) is also listed among firms barred from PERM filings, raising concerns over its US talent acquisition.
moderate pressure as market assesses impact
Regulatory suspension may affect Adobe’s staffing plans.
Market effects
IT services and software firms may see broader hiring‑cost concerns.
US tech stocks could face short‑term pressure amid immigration crackdown.
International outsourcing firms may experience valuation adjustments worldwide.
Counterpoint
Large caps like Microsoft may absorb the impact without significant stock moves.
Key entities
- RegulatorUS Department of Labor
Announced the PERM suspension.
- OfficialKeith Sonderling
Labour Secretary who communicated the suspension.


