INFY•INFY•Analysts said Indian IT firms are unlikely to face near-term fallout from the US suspension of the PERM green-card program. The firms accounted for less than 2% of PERM applications filed between October 2024 and September 2025, while TCS said it expected no effect on its workforce strategy or client engagements.
Analysts said Indian IT firms are unlikely to face near-term fallout from the US suspension of the Permanent Labor Certification program, which provides a route to permanent residency. ICICI Securities said the development could hurt sentiment and raise longer-term talent-retention concerns, rather than immediately affect revenue. Indian IT firms accounted for less than 2% of PERM applications filed between October 2024 and September 2025, the brokerage said.
Nasscom said firms had significantly reduced their dependence on H-1B visas and expanded local hiring in the US. TCS said it did not expect the suspension to affect its workforce strategy or client engagements, citing single-digit PERM applications over the past two years. India's foreign ministry said the steps did not advance the countries' shared ambitions and described comments by US Vice President JD Vance as unwarranted.
The US move comes as AI-led disruption affects India's $315 billion IT industry, following increased H-1B visa fees. Indian IT stocks had fallen 25% this year, compared with a 14% drop in the benchmark, and firms rely on the US market for a bulk of their revenue. Bajaj Broking's Sumit Singhania said companies could face higher hiring and compliance costs as they rely more on US talent and subcontracting, potentially weighing on margins.
