India calls Vance's ‘indentured servants’ remark ‘deeply offensive’; slams US move against IT firms

India on Friday termed as "deeply offensive" US Vice President J D Vance's description of foreign workers hired on H-1B visas as "foreign indentured servants", asserting that Indian professionals in the United States are highly skilled contributors to its economy and innovation ecosystem.

The Ministry of External Affairs (MEA), in a statement, said such descriptions were unwarranted and ignored the contributions of Indian professionals to the US economy.

"Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive," it said.

The ministry said generations of immigrants had contributed to the growth and prosperity of the United States through their labour, enterprise and innovation.

The MEA also criticised the US decision to suspend permanent labour certification applications of eight technology companies, saying the move does not advance the shared ambitions of the two countries.

The US Department of Labour on Thursday suspended eight technology companies, including Microsoft, Adobe, Tata Consultancy Services, Infosys and Wipro, from the Permanent Labour Certification (PERM) programme, citing alleged abuse of the system and concerns over employment opportunities for American workers.

Clarifying the implications of the move, the ministry of external affairs said the suspension of PERM applications does not, by itself, affect the validity of existing H-1B visas or the status of visa holders and their dependents.

However, it could affect the permanent-residency or Green Card process of eligible employees of the companies concerned, the MEA said.

The ministry stressed that talent mobility benefits both economies, creating opportunities for Indian professionals while helping US companies access skilled talent that contributes to innovation, research, productivity, competitiveness and job creation.

"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," it said.

"The steps announced by the US do not advance the shared ambitions of both countries," the MEA added.

The US action was announced by Vance, Labour Secretary Keith Sonderling and Attorney General Todd Blanche as part of measures under the US Anti-Fraud Task Force.

Sonderling said the Labour Department would not accept new applications or process pending PERM applications involving the companies.

He named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini among the firms being suspended, and said Microsoft and Adobe were also being suspended due to multiple active federal investigations.

The US administration has alleged that companies used the programme in ways that disadvantaged American workers.

The MEA said it was continuing to follow developments around the issue.