In a statement published Friday, India's Ministry of External Affairs accused Vance of using language that carries 'painful historical and colonial legacy connotations.' The ministry said Indian professionals in the United States are 'highly educated and skilled contributors to its economy and innovation ecosystem,' and that the suspensions announced by the US 'do not advance the shared ambitions of both countries.'
Vance made the remarks Thursday as the US Department of Labor announced the suspension of Microsoft, Adobe and several large Indian IT firms — including Cognizant, Infosys, Capgemini, Tata Consultancy Services, Wipro and HCL — from the Permanent Labor Certification (PERM) program. The suspension prevents these companies from applying for permanent residency for employees on H-1B visas. Vance accused Microsoft of replacing 6,000 laid-off workers with people on H-1B visas, adding that companies 'cannot lay off American workers and then replace them with foreign indentured servants.'
According to official US data, about 70% of H-1B beneficiaries in 2025 were born in India. The Indian foreign ministry noted that existing H-1B visas and the status of current holders and their dependents would not be affected.
Industry body NASSCOM said Indian technology companies have 'significantly reduced their dependence on H-1B visas over the last few years' and are expanding domestic hiring in the US. Vance's office did not immediately respond to a request for comment.