Jairam Ramesh criticised the Centre over the US decision to bar IT majors from the Green Card program, alleging the Modi government’s approach towards Trump had failed to protect India's interests and was an appeasement that did not yield results.

Ramesh Slams Centre's 'Appeasement' Policy

Congress RS MP Jairam Ramesh on Friday criticised the Centre over the US government's decision to bar several IT majors from the Green Card program and its effect on Indian IT professionals, alleging that the Modi government’s approach towards US President Donald Trump had failed to protect India's interests.

In a post on X, Ramesh said the US government's latest actions had once again demonstrated that appeasing powerful leaders did not yield results. He linked the development to the Centre's decision on UPI Merchant Discount Rate (MDR) charges, alleging that the move would directly benefit American companies.

"That appeasement of bullies never pays is once again proven by the US Govt’s actions yesterday, targeted directly against Indian IT professionals. This has come shortly after the Modi Govt went out of its way to please President Trump by imposing UPI MDR charges that will clearly and directly benefit American companies," Ramesh said on X.

Ramesh said India had several options to respond under laws already passed by Parliament, including the Digital Personal Data Protection Act, 2023, and its Rules. However, targeting Prime Minister Narendra Modi, he alleged that the government would not act against the US move.

"India has a number of options to retaliate under laws already passed by Parliament like the Digital Personal Data Protection Act, 2023 and its Rules. But a thoroughly compromised PM now under siege on GyaneshGate will not do so,” Ramesh said.

'Complex and Far-Reaching Consequences': Priyank Kharge

Karnataka Minister for IT, Priyank Kharge earlier said the US government's suspension of the Permanent Labour Certification Programme for major IT outsourcing companies could have complex and far-reaching consequences for India, potentially creating opportunities for the country's technology sector.

In a post on X, Kharge said the move could pose challenges for the traditional Indian IT outsourcing model, including higher operating costs in the United States, difficulties in retaining skilled employees and reduced flexibility in deploying Indian professionals on-site.

"The US government’s suspension of the Permanent Labour Certification Programme for major IT outsourcing companies, a critical step through which foreign workers, including H-1B visa holders, pursue employment-based green cards, could have consequences for India that are both complex and potentially far-reaching," Kharge said in a post on X.

Nasscom Responds to Suspension

Following the US government's temporary suspension of several major technology companies from filing new applications under the Permanent Labour Certification (PERM) programme, the National Association of Software and Service Companies (Nasscom) said immigration and skilled talent mobility were two distinct issues and should not be viewed through the same lens.

In an official statement, Nasscom said the US Department of Labour's decision affected a specific immigration pathway, while Indian technology companies had significantly reduced their dependence on H-1B visas over the years, expanded local hiring and built a strong domestic workforce in the United States.

"The U.S. Department of Labor has today announced the temporary suspension of certain IT companies, including Indian technology companies operating in the U.S., from filing new applications under the Permanent Labor Certification (PERM) programme. While the decision affects a specific immigration pathway, Nasscom has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens," the statement said.

"The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the US and it will continue to be used to address short term talent gaps. However, over a number of years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the U.S," the statement added.

Nasscom added that Indian technology companies worked with a majority of Fortune 500 companies in the US, enabling them to innovate and grow while generating more local jobs. It said the number of employees transitioning from H-1B visas to permanent residency through the PERM process was relatively limited.

The industry body also said Indian technology companies operated across more than 80 countries and had consistently demonstrated their commitment to complying with local laws and regulatory requirements."We are confident that they will continue to adhere to applicable regulations in the US as well," it said.

US Labour Department Announces Suspension

Earlier, US Labour Secretary Keith Sonderling announced the US Government is suspending from the Permanent Labour Certification Program some of the largest IT outsourcing firms in the world, which include Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The US Labour Department attributed the suspension to multiple active federal investigations, even as it also suspended US tech majors Microsoft and Adobe from the program.

The US Labour secretary further said the department would not accept new applications or process pending permanent labor certification applications involving the companies."We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said.

Sonderling said the companies named had collectively sought millions of foreign workers and received hundreds of thousands of H-1B visa approvals and permanent labour certifications."Since 2009, just these companies alone have requested almost 3 million foreign workers. They received over 230,000 H1B Visa approvals and over 100,000 permanent labor certifications that's hundred and thousands of jobs that were taken from a American workers," the Labour Secretary said.

The announcement comes after the US Department of Homeland Security proposed new fees for F-1 nonimmigrant students seeking to participate in Optional Practical Training (OPT), describing the measure as an effort to protect American workers and strengthen the integrity of the immigration system. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)