The US government's decision to suspend several major technology companies from its Permanent Labour Certification (PERM) programme could create challenges for Indian IT exporters while opening new opportunities for technology development in India, Karnataka IT Minister Priyank Kharge said on Friday.
In a post on X, Kharge said the restrictions could accelerate the movement of high-value engineering, research and product development work to India.
Karnataka, which accounts for approximately 40% of India's IT and software exports, could be particularly affected by changes in global technology hiring.
Restrictions may raise costs for Indian IT firms
The PERM programme forms an important part of the employment-based Green Card process in the United States.
It requires employers to establish that hiring foreign workers for permanent positions will not adversely affect the wages and working conditions of American employees.
Kharge warned that restrictions could increase operating expenses for traditional Indian outsourcing companies.
They could also complicate employee retention and reduce flexibility in deploying skilled professionals to US client locations.
According to the US Department of Labor, companies affected by PERM participation restrictions include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
The development comes amid increased scrutiny of H-1B hiring and employment-based immigration programmes by the Trump administration following allegations of misuse.
India could attract more GCCs
Despite the potential difficulties for outsourcing businesses, Kharge believes the restrictions could strengthen India's position as a global technology destination.
If relocating engineers to the US becomes more expensive or difficult, multinational companies may increasingly assign sophisticated technology projects to Indian operations.
This could accelerate the expansion of global capability centres (GCCs), which support multinational businesses through engineering, analytics, research and technology development.
Kharge said the shift could generate greater demand for experienced professionals and attract additional mandates in artificial intelligence (AI), deep technology and product innovation.
Such developments could help India move beyond conventional IT services towards higher-value technology activities.
However, the minister cautioned that India must improve its preparedness to capitalise on these opportunities as international companies reconsider their workforce and investment strategies.
