H-1B Visas and PERM Suspension: Impact on Indian IT Firms [Prelims Bits]

13 Oct 2026

Tags: Prelims   Current events of national and international importance

Source: The Indian Express

  • Context: US suspension of PERM applications for major technology firms has limited immediate impact on Indian IT companies, which have increasingly shifted towards local hiring and overseas delivery centres.
  • H-1B visa: US non-immigrant visa allowing employers to hire foreign workers in speciality occupations requiring specialised knowledge and typically a bachelor’s degree or equivalent.
  • PERM (Program Electronic Review Management): US Department of Labor’s labour-certification process, generally required for employment-based green-card applications to demonstrate that qualified US workers are not available for the job under applicable rules. It is not a visa.
  • Business-model shift: Indian IT firms are reducing dependence on onsite Indian employees by expanding local hiring and delivery centres in the Americas, Europe and Asia-Pacific.
  • Reasons for shift: Tighter US immigration rules, higher visa-related costs, improved digital connectivity and wider acceptance of remote/offshore work.
  • Hiring trend: Indian IT companies are increasing local recruitment in markets such as the US, Canada and Mexico, alongside expansion of global delivery centres.
  • Impact: Greater localisation can reduce exposure to immigration-policy changes, but may increase local employment costs and require adaptation to different labour markets.
  • Distinguish between the H-1B visa (temporary employment in speciality occupations), PERM labour certification (a step in many employment-based green-card cases) and a green card (lawful permanent residence in the US).

Prelims Question

Q1. With reference to employment-based immigration in the United States, consider the following statements:

  1. The H-1B visa is a non-immigrant visa category that permits eligible foreign professionals to work in qualifying specialty occupations.
  2. PERM labour certification is itself a visa that grants temporary employment authorisation to foreign workers.
  3. PERM labour certification is generally associated with employer-sponsored employment-based green-card applications and involves assessing the availability of qualified US workers under applicable rules.
  4. A green card confers lawful permanent resident status in the United States, unlike the temporary employment status associated with an H-1B visa.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4

Answer: (b) 

Explanation:

  • Statement 1 is Correct: H-1B is a temporary non-immigrant visa category for qualifying specialty occupations, subject to applicable eligibility requirements.
  • Statement 2 is Incorrect: PERM is a labour-certification process administered by the US Department of Labor, not a visa or an independent grant of employment authorisation.
  • Statement 3 is Correct: PERM is generally a step in certain employer-sponsored employment-based immigration cases and ordinarily requires the employer to demonstrate that applicable labour-market requirements are met.
  • Statement 4 is Correct: A green card establishes lawful permanent residence, whereas H-1B status is temporary and subject to its governing conditions.