Zerodha’s Dinesh Pai sees an upside in US green card suspension for TCS, Infosys, Wipro

The suspension targets employer applications under the Permanent Labor Certification programme, or PERM. It affects TCS, Infosys, Wipro, HCL Technologies, Microsoft, Adobe, Cognizant and Capgemini. This matters because PERM is required before an employer can sponsor a foreign worker for an employment-based green card.

The US Department of Labor will not accept new PERM applications from these companies. It will also stop processing applications already pending. The action therefore blocks the route through these employers, rather than cancelling visas or green cards already granted.

The suspension was announced on October 8 by Vice President JD Vance and Labor Secretary Keith Sonderling. Officials cited alleged fraud and the displacement of American workers. No end date has been announced, so affected employees may face longer waits while the companies assess their immigration and hiring plans.

PERM stands for Permanent Labor Certification. It is a programme administered through the US Department of Labor. An employer must clear this step before sponsoring a foreign worker for an employment-based green card. The process connects a company’s need for a worker with the government’s review of that employment.

Under the suspension, the Department of Labor will neither accept new PERM applications nor process pending applications from the eight named companies. That means an employer cannot move normally through this required stage for affected workers. The restriction is specifically on the PERM route, not on every immigration status.

The practical effect is delay and uncertainty. Employees with existing H-1B visas or already-granted green cards keep those statuses, but workers waiting for PERM progress may wait longer. Because no end date has been announced, companies and employees may reconsider where work and talent are located.

The article highlights two large economic flows. India receives about $125 billion in remittances each year, the highest total of any country. Roughly one-quarter, or more than $30 billion, comes from the United States. These transfers reflect the economic importance of Indians working and settling abroad.

India’s technology base is also substantial. The country hosts more than 2,100 Global Capability Centres, known as GCCs. Together, they employ about 2.4 million people. GCCs give multinational companies a way to operate engineering, technology and other capabilities in India.

The figures explain why the suspension matters beyond individual visa cases. Fewer high-earning Indians settling in America could eventually reduce remittances, angel capital and soft power. At the same time, Pai expects GCCs to expand and more engineering talent to stay in India. The same policy could therefore weaken one flow while strengthening another.

The suspension does not cancel immigration benefits employees already hold. Existing H-1B visas remain valid, and green cards that have already been granted are unaffected. The restriction applies to the PERM route through the eight named employers.

The key change concerns applications in the pipeline. The Department of Labor will not process pending PERM applications from those companies, just as it will not accept new ones. A worker who was relying on an employer’s PERM filing therefore cannot move forward normally through that stage of green card sponsorship.

No end date has been announced. Employees already waiting may face a longer period of uncertainty, even if their jobs and current visas continue. The delay could also encourage some workers, companies and projects to remain in India, matching Dinesh Pai’s view that limits on US immigration may keep more talent and work there.

US Vice President JD Vance and Labor Secretary Keith Sonderling announced the suspension on October 8. US officials cited alleged fraud and the displacement of American workers. The decision covers eight companies and stops the Department of Labor from accepting or processing their PERM applications.

Microsoft said 80% of its roughly 6,000 H-1B applications in the last fiscal year involved extending or changing the status of existing employees. That description suggests most of its applications were not for entirely new workers entering the system. Microsoft therefore highlighted the existing-employee context when defending its record.

TCS said it does not expect a material effect on its workforce strategy. It reported PERM filings in the single digits over the past two years. TCS still plans to hire 15,000 people in the US over the next five years, showing that the suspension has not changed that stated hiring target.

Limits on bringing technology workers to the US can change where companies place work. If employees cannot relocate or obtain a predictable green card path, companies may build or expand teams in countries where that talent already lives. For Indian professionals, that could mean more engineering and technology work remaining in India.

Global Capability Centres provide a concrete channel for this shift. India already has more than 2,100 GCCs employing about 2.4 million people. Pai expects these centres to expand further. Companies could use them for larger technology operations, while Indian engineers could build local companies and AI startups instead of working under visa uncertainty abroad.

The effects could run in both directions. India might gain jobs, engineering leadership and startup talent, but it could lose some remittances and angel capital from Indians who would otherwise settle in America. Pai also warned of less Indian soft power in top American jobs. The longer the freeze lasts, the stronger these incentives could become.

Employment-based immigration gives companies a way to hire workers whose skills are needed across national borders. In this case, an employer must first clear PERM before sponsoring a foreign worker for an employment-based green card. The system therefore links a job, an employer and a worker’s long-term right to remain.

For example, an Indian engineer working for a listed technology company may hold an H-1B visa while the employer pursues PERM. If PERM is suspended, the worker’s current H-1B is not cancelled, but the permanent-residency route is delayed. The company may then keep the work in India, expand a GCC or adjust its hiring plans.

That can affect both labour markets. The US may see fewer foreign workers in some technology roles, while India may gain work, talent and startup activity. India could also lose remittances, angel capital and soft power if fewer professionals settle in America. These broader labour-market effects are an inference based on established economic principles and the article’s examples.