India-U.S. Ties and the Hurdle of American Unilateralism, Pg6

Key Highlights:

• The U.S. suspended the Permanent Labour Certification (PERM) program for eight global IT companies, including Indian firms, citing misuse of immigration systems.
• India recorded a significant trade surplus of $33.8 billion with the U.S. in bilateral trade exceeding $140 billion in FY 2025-26.
• India continued importing Russian oil despite additional U.S. tariffs and sanctions, leading to trade friction.
• Challenges persist in defence co-production and technology transfer, exemplified by delays in GE F404 engines for India's Tejas fighter aircraft.
• The Mecca Pact, a new security alliance involving Pakistan, Saudi Arabia, and Turkey, has raised security concerns for India.
• India's military operation, Operation Sindoor, against Pakistan in May 2025, also contributed to bilateral strains.

Detailed Insights:

• The PERM program is a U.S. Department of Labor process that allows employers to hire foreign nationals for permanent positions, serving as a prerequisite for certain employment-based green card applications.
• Indian professionals account for over 70% of annual H-1B visa approvals, making the suspension of the PERM program particularly impactful for India's IT sector.
• Trade negotiations between India and the U.S. have "plateaued," with the U.S. seeking access to India's dairy and agriculture sectors, which India is reluctant to concede.
• The U.S. imposed a 25% duty on India's Russian oil purchases in August 2025, alongside sanctions on Russian companies, to pressure India to reduce these imports.
• Despite the Framework for the U.S.-India Major Defence Partnership signed in October 2025, meaningful co-production and technology transfer remain elusive in defence deals.
• The India-U.S. Defence Acceleration Ecosystem (INDUS-X), launched in June 2023, aims to foster defence innovation and collaboration between the two countries.
• Operation Sindoor was an Indian military campaign in May 2025, involving missile strikes on terrorism-related infrastructure in Pakistan, in response to an attack in Kashmir.
• The Mecca Pact, a mutual security arrangement between Saudi Arabia, Turkey, and Pakistan, was signed in August 2026, reportedly with Washington's blessings, causing unease in New Delhi.
• The Initiative on Critical and Emerging Technology (iCET), launched in 2023, was succeeded by the India-U.S. Transforming the Relationship Utilizing Strategic Technology (TRUST) Initiative in February 2025, aiming to deepen cooperation in advanced technologies like AI and semiconductors.

Key Concepts Involved:

• Permanent Labour Certification (PERM) Program: A U.S. Department of Labor process for employers to obtain certification to hire foreign workers for permanent employment, ensuring no qualified U.S. workers are available.
• H-1B Visa: A non-immigrant U.S. visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations.
• Unilateralism: A foreign policy approach where a state acts without the support or consent of other states or international organizations.
• Technology Transfer: The process of conveying technological know-how, skills, and manufacturing capabilities from one entity or country to another.