US IT Salvo Opens New Front For India, Pg10

Key Highlights:

• The US government suspended major Indian IT firms from the PERM program, a pathway to permanent residency.
• This action is part of a broader US agenda to crack down on foreign labor and curtail immigration.
• It follows a previous US administration move to introduce a $100,000 fee for H-1B visas.
• The US also passed a new law allowing tariffs of up to 100% on countries, including India, that are top energy buyers from Russia.
• Statements from both the US and India indicate that the conclusion of the India-US trade deal is not imminent.

US Tariffs.jpg

Detailed Insights:

• The PERM program is a labor certification process required for certain employment-based green card applications in the US.
• While the immediate impact on Indian IT firms from the PERM program suspension might be muted, it is expected to sour sentiment.
• India's software, business, and other services exports, a major source of foreign exchange, stood at $221 billion in 2025-26.
• The US administration's actions are seen as a pattern of pressure on India across various fronts.
• Between December 2022 and August 2026, India accounted for 37% of Russia’s crude exports, second only to China.
• US Trade Representative Jamieson Greer stated that a trade agreement was not "imminent."
• India's Finance Minister also noted that trade negotiations had reached a "plateau."
• India faces mounting pressure concerning energy purchases, services exports, and labor mobility.

Key Concepts Involved:

• PERM Program: A U.S. Department of Labor process for employers to obtain labor certification for permanent employment of foreign workers.
• H-1B Visa: A non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations.
• Tariffs: Taxes imposed by a government on imported goods and services, often to protect domestic industries.
• Foreign Exchange (Forex): The conversion of one currency into another, essential for international trade and investment.