Press Release
October 9, 2026•55,790 views

US Green Card Processing Freeze Raises Questions for India’s IT Industry and H-1B Workers

US Green Card Processing Freeze Raises Questions for India’s IT Industry and H-1B Workers

The United States’ restrictions on employment-based permanent residency processing have raised fresh concerns for India’s technology industry, which has long relied on the American market for business growth and career opportunities. The developments surrounding the PERM labour certification process highlight the risks Indian IT companies and professionals face when immigration policies become more restrictive.

PERM, short for Program Electronic Review Management, is a key step in the US employment-based green card process for many foreign workers. Employers generally need labour certification from the US Department of Labor before proceeding with certain employment-based immigrant petitions. Any significant disruption to this process can create uncertainty for companies sponsoring international employees and workers planning long-term careers in the country.

Why the PERM Freeze Matters to Indian IT Companies

India’s technology services sector has built a substantial part of its international business around serving US clients. Large IT companies, consulting firms and technology specialists frequently deploy employees to American projects, making immigration rules an important factor in workforce planning.

A prolonged interruption in PERM processing could complicate the path to permanent residency for eligible Indian professionals. Employees who have spent years working in the United States may face greater uncertainty about their long-term status, while employers could find it more difficult to retain experienced workers who want a more stable immigration arrangement.

The implications extend beyond individual employees. Businesses may need to reconsider staffing plans, project assignments and the distribution of skilled workers across international offices. If immigration-related uncertainty increases, companies could face additional administrative costs and pressure to develop alternative workforce strategies.

Indian Professionals Could Face Greater Uncertainty

For Indian technology workers, the green card process is often a long-term commitment involving employment, immigration paperwork and career decisions. PERM certification is not itself a green card, but it can be an essential stage in obtaining certain employer-sponsored permanent residency categories.

Delays at this stage may affect the timing of subsequent immigration steps. The consequences will depend on the applicable visa category, an individual's circumstances and the duration and scope of any restrictions.

Workers waiting for permanent residency may have to plan around continued dependence on temporary immigration status. This can influence decisions about changing employers, accepting promotions, relocating with family members or making long-term financial commitments in the United States.

Indian professionals are particularly exposed to uncertainty because employment-based immigration demand from India has historically exceeded the availability of green cards in some categories. Existing backlogs can already mean lengthy waits, making additional procedural disruptions especially consequential.

A Challenge to India’s Traditional IT Business Model

The situation also raises broader questions about the future of India's technology services model. For decades, Indian IT companies have combined domestic engineering and support teams with professionals working at client locations in major overseas markets.

That approach has helped businesses maintain close relationships with customers, deliver complex projects and expand globally. However, greater immigration restrictions could make the movement of skilled workers less predictable and increase the importance of local hiring, offshore delivery and distributed teams.

Companies may respond by expanding US-based recruitment, strengthening delivery centres in India or other countries, and using remote collaboration where client requirements permit. Such changes would not necessarily eliminate demand for Indian technology talent, but they could alter how companies deploy employees and compete for contracts.

What Happens Next?

The wider impact will depend on the precise scope of the PERM restrictions, how long they remain in place and whether additional policy changes follow. A processing disruption should not automatically be interpreted as the cancellation of every pending green card application or a blanket ban on employment-based immigration.

For India’s technology sector, the key concern is predictability. Businesses need reliable rules to plan hiring and client delivery, while workers need clarity about the immigration pathways available to them.

The developments serve as a reminder that India's global technology ambitions are influenced not only by skills, costs and innovation, but also by immigration decisions made in major markets. Diversifying delivery models and reducing dependence on any single country's immigration framework may become increasingly important for companies and professionals alike.

More to Read

Related Articles

View all Press Release

Share this article