India’s Ministry of External Affairs condemned U.S. Vice President JD Vance’s description of H-1B visa holders as “foreign indentured servants,” calling the language “deeply offensive” and “unwarranted” on October 9, 2026. The ministry said the phrase carries painful colonial and historical associations.
The rebuke centered on the wording. India also challenged the implication that skilled foreign professionals should be viewed as a threat to U.S. workers.
“We believe that such descriptions are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its economy and innovation ecosystem.”
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The ministry said generations of immigrants, especially Indian professionals, have contributed to U.S. economic growth, enterprise and innovation. It argued that cross-border talent mobility supports both countries through research and job creation. The exchange unfolded as a separate U.S. labor action raised questions about green-card processing.
Vance tied foreign hiring to lower pay and U.S. layoffs
Vance made his remarks on October 8 at a U.S. news conference about visa fraud and foreign-worker hiring. He alleged that companies bring in foreign workers to cut labor costs and replace American employees. He claimed an H-1B employee earns less than a U.S. citizen doing the same job.
“If you are working as an H-1B visa in the United States of America, you’re earning $20,000 less than an American citizen hired in the same position.”
Vance also alleged that workers brought in by foreign outsourcing companies earn $48,000 less than comparable American workers. He framed the practice as benefiting corporations at the expense of U.S. employees.
“You bring in indentured servants from outside the country, you lay off American workers and, if you’re a corporation, you make a ton of money by undercutting the wages of American workers.”
He singled out Microsoft, alleging that the company laid off 6,000 American workers while receiving 6,300 H-1B visas and nearly 3,000 green cards during the preceding year. Vance called the alleged arrangement “a scandalous system.”
The ministry’s response rejected that characterization of Indian professionals. It said their education and skills contribute to the U.S. economy and innovation, and objected to terminology it said carried a painful historical and colonial legacy.
The labor halt targets eight employers, not H-1B status
The U.S. Department of Labor suspended Permanent Labor Certification processing for eight companies. The list includes Microsoft, Adobe, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant and Capgemini.
Labor Secretary Keith Sonderling announced the action on October 8, 2026, citing multiple active federal investigations. The processing halt concerns PERM, a step in the employment-based green-card process. It is separate from the H-1B visa program.
That distinction shapes the immediate immigration effect. The Ministry of External Affairs clarified that the action does not, by itself, invalidate existing H-1B visas or change the immigration status of workers or their dependents.
Eligible employees at the named companies could still face delays or other effects in green-card processing. The risk is tied to the path from temporary H-1B employment to permanent residence, particularly when an employee’s green-card route requires PERM.
MEA spokesperson Randhir Jaiswal delivered the clarification. The ministry said the processing halt alone does not end a worker’s current H-1B status. The affected step is the employer’s labor certification process, not the visa framework itself.
India also emphasized the mutual value of mobility between the two countries. It linked that movement of talent to research, innovation and job creation, as the U.S. processing suspension leaves green-card cases at the targeted employers facing possible delays.
