- H-1B visa-linked PERM program cancelled, affecting Indian IT professionals.
- US-India trade deal talks stalled, indicating strained bilateral relations.
- Trump imposed sanctions restricting India's purchase of Russian oil.
US-India Ties: Since Donald Trump came to power for the second time in the US last year, his administration has not been as friendly with India as was expected. From the tariff war to the latest elimination of the H-1B visa-linked programme, the Trump administration took several moves one after another that widened the distance between the two friendly countries.
What Is The Permanent Labour Certification (PERM) Row?
The Permanent Labour Certification Programme (PERM) allows companies to apply for green cards for H-1B visa workers. The US cancelled the programme for certain IT companies, including Microsoft, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and others. Subsequently, thousands of of Indians professionals working for IT companies will be affected by the move.
India Hits Back At The US
The Ministry of External Affairs criticised the US move, saying the steps announced by the US do not advance the shared ambitions of both countries.
#WATCH | Delhi: On the U.S. Department of Labor’s decision concerning the Permanent Labor Certification (PERM) programme for certain companies, MEA Spox Randhir Jaiswal says, "We are aware of the U.S. Department of Labor's decision concerning the Permanent Labor Certification Program, known as PERM, for certain companies. It should be noted that PERM is distinct from the H-1B visa programme. The suspension of PERM applications does not, by itself, affect the validity of H-1B visas or the status of H-1B visa holders and their dependents, though it could have some impact on the permanent residency or green card process for eligible employees of the affected companies. It should also be clear that talent mobility adds value to both economies, that of India and that of the United States. While it creates opportunities for Indians, it equally benefits U.S. companies by providing access to cutting-edge talent, innovation, research, productivity, competitiveness, and job creation. Besides creating shareholder wealth in the United States, this is an area of tremendous mutual benefit for the two countries. Our expectation is that all stakeholders in this process will appreciate this fact. The steps announced by the U.S. do not advance the shared ambitions of both countries. We continue to follow developments on this particular issue." He adds, "Regarding the comments made by the U.S. Vice President, let me say that we believe 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. Indeed, the history of the United States itself has been shaped by generations of immigrants whose labour, enterprise, and innovation have contributed to its growth and prosperity. Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive."
— ANI (@ANI) October 9, 2026
"It should also be clear that talent mobility adds value to both economies. While it creates opportunities for Indians, it equally helps US companies with cutting-edge talent, innovation, research, productivity, competitiveness and job creation, besides creating shareholder wealth in the US," the MEA pointed out.
"We have also seen some comments in this context by the US Vice President. 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," the MEA said.
Delay In US-India Trade Deal
The impact of strained US-India ties is evident in the ambitious bilateral trade deal. On October 5, Finance Minister Nirmala Sitharaman, in the latest sign of difficulties in long-running efforts to finalise a bilateral agreement, said the trade deal talks between India and the United States have reached a plateau and further concessions might be difficult.
Trump Brings Law To Restrict India's Buying Russian Oil
On September 18, Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which restricts countries, including India and China, from buying oil from these war-torn nations. New US sanctions force Indian refiners to slash Russian crude imports, drawing New Delhi's objection.
The list of actions taken by Trump that have direct or indirect implications on India is long. However, the question is if India is one of the biggest markets for the US, then why is the Trump administration taking an adverse stance?
Why Is Trump Tough On India?
Trump praised Prime Minister Narendra Modi, highlighting the PM’s tough negotiating ability and his image as a strong political operator behind the scenes. Yet, Trump has been pressuring India to curb Russian oil purchases. In fact, the US wants New Delhi to engage with the US-controlled Venezuelan government for energy imports. However, New Delhi has stated on several occasions that the interests of the Indian people remain paramount in oil imports.
.@VP: "There has been no company in the United States, unfortunately, that has abused this system more than Microsoft." Microsoft laid off 6,000 American workers in 2025 after certifying that it could not find qualified American employees — yet the company was approved for more than 6,000 H-1Bs and filed 3,682 PERM applications, including nearly 1,000 applications for the same positions as the laid off American workers.
— Rapid Response 47 (@RapidResponse47) October 8, 2026
November 3 Midterm Elections
The timing of action against India-linked IT companies is crucial. Vice President JD Vance's allegations that IT firms are not providing jobs to Americans and are instead widening opportunities for foreigners (particularly Indians) came at a time when Trump is set to face a litmus test in the November 3 US midterm elections. Anti-India remarks by Republicans indicate that they are engaged in poll gimmicks to please their core voters. The Trump administration is trying to show that it is concerned about American job seekers.