Archive · 9 Oct 2026
US Green-Card Freeze Warns India’s IT Industry of Wider Curbs
The US has paused green-card sponsorship applications at eight technology companies.
Four of the companies are major Indian IT firms.
The pause affects a route for workers to seek permanent residency, but it does not automatically stop H-1B visa applications or cancel existing H-1B status.
A research group called GTRI says the move could be a warning that more limits may come.
It says projects may not be greatly disrupted right away, but workers and companies face uncertainty.
The US is a very large market for India’s software and IT services exports.
GTRI says companies can prepare by serving more work from India and seeking customers in other markets.
It also suggests investing in AI and other higher-value technology work.
The US suspended eight technology companies from the PERM programme on October 8, pausing new and pending green-card sponsorship applications.
Affected companies include India’s TCS, Infosys, Wipro and HCLTech, as well as Microsoft, Adobe, Cognizant and Capgemini.
The freeze applies to PERM-based green-card sponsorship; it does not itself block H-1B applications under usual rules or cancel workers’ existing H-1B status.
GTRI warned that restrictions could potentially extend to H-1B hiring, skilled-worker mobility and outsourcing, while noting immediate project disruption may be limited.
GTRI recommended diversifying export markets, expanding delivery from India and US local hiring where needed, and investing in AI and higher-value work.
- Who
- The US government, eight technology companies, and India’s IT industry; GTRI issued the warning.
- What
- The US suspended eight companies from the PERM programme, freezing new and pending green-card sponsorship applications.
- When
- The suspension took effect on October 8; the article does not specify a year.
- Where
- The action concerns US green-card sponsorship and its effects on technology companies and workers, including Indian IT firms.
- Why
- GTRI said the freeze signals possible wider restrictions on foreign technology workers and creates uncertainty for employees and companies.
Potentially Limited Immediate Effects
Risk of Broader Restrictions
Impact on projects and staffing
Potentially Limited Immediate Effects
GTRI said immediate disruption to IT projects could be limited, and the freeze does not itself block H-1B applications under usual rules or cancel existing H-1B status.
Risk of Broader Restrictions
The freeze creates uncertainty for workers seeking permanent residency and companies planning long-term US staffing.
Possible wider consequences
Potentially Limited Immediate Effects
The action is limited to PERM-based green-card sponsorship, and several major technology companies—including Amazon, Google, IBM, Meta, Apple, Intel and Accenture—were not included.
Risk of Broader Restrictions
GTRI warned that restrictions could extend to H-1B hiring, skilled-worker mobility and outsourcing.
- Companies affected
- TCS, Infosys, Wipro, HCLTech, Microsoft, Adobe, Cognizant and Capgemini
- Programme
- Permanent Labour Certification Programme (PERM)
- Date
- October 8; year not specified
- H-1B impact
- The freeze itself does not stop H-1B applications under usual rules or cancel existing H-1B status.
- US share of Indian exports
- USD 119.7 billion, or 54.1% of software and IT-enabled services exports of USD 221.4 billion in FY2025-26
- Estimated US service delivery
- GTRI estimated USD 109.8 billion delivered from India and USD 9.9 billion through on-site work, applying global delivery shares; it cautioned these were not US-specific figures.
- GTRI recommendations
- Diversify export markets, strengthen delivery from India, expand US local hiring where needed, and focus on AI and higher-value technology work.