Indian students eyeing the US for higher education and careers face fresh uncertainty after Washington suspended eight major IT firms, including Infosys, TCS, Wipro, and HCLTech, from sponsoring green cards. While existing H‑1B visas remain unaffected, the move complicates long‑term residency prospects, making career planning more precarious.
What Has Changed
Suspension of PERM Programme: On 8 October 2026, the US Department of Labour barred Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech, and Capgemini from filing or processing new Permanent Labour Certification (PERM) applications.
Why It Matters: PERM is the first step for employer‑sponsored green cards, crucial for foreign workers seeking permanent residency. Without it, students and professionals cannot transition smoothly from temporary visas to long‑term settlement.
Impact on Indian Students
Education to Career Pathway: Many Indian students pursue US degrees with the expectation of securing H‑1B visas and eventually green cards. The suspension disrupts this pipeline, especially for those targeting IT majors.
Talent Retention Concerns: Immigration experts warn that students nearing the six‑year H‑1B limit may face “indefinite green‑card delays” and risk losing legal work status if employers cannot sponsor them.
Shift in Priorities: Students may increasingly evaluate universities and employers not just on academic or salary prospects, but also on their ability to provide stable immigration pathways.
What Experts Say
Former CEO of HCL Technologies Vineet Nayar said, “Trump may make it harder for Indian engineers to move to American work. The opportunity is to make American work move to Indian engineers.”
According to immigration lawyer Rohit Jain, “These are people who have spent years on temporary status and followed every rule, and now their green card process is on hold because of a dispute they have no part in.”
Broader Implications
Limited Immediate Business Impact: Data shows Indian IT firms filed fewer than 1,400 of 117,849 PERM applications in FY25, suggesting the corporate fallout may be modest.
Student Choices: With residency prospects dimmed, Indian students may increasingly look to Canada, Australia, or Germany, where immigration pathways are clearer.
Policy Uncertainty: The suspension is framed as a crackdown on alleged misuse of immigration programmes, but investigations are ongoing and no wrongdoing has yet been proven.
Takeaway
For Indian students, the US remains academically attractive but career stability is now less assured. The green card freeze means graduates must weigh the risks of temporary visas against alternative destinations offering smoother settlement routes.