'In Touch With US Side on Mutually Beneficial Trade Deal': MEA Amid Row Over JD Vance’s Remark on H-1B Workers

New Delhi: The Ministry of External Affairs on Friday said India remains in touch with the United States on a mutually beneficial trade arrangement even as it firmly rejected US Vice President JD Vance’s description of H-1B visa holders as “indentured servants.”

Reacting to Vance’s remarks at a news conference on visa fraud, MEA spokesperson Randhir Jaiswal told at a press briefing that such language was “unwarranted” and ignored the substantial contributions of Indian professionals to the American economy and innovation ecosystem.

“We believe such descriptions are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its economy and innovation ecosystem,” Jaiswal said.

“Indeed, the history of the United States itself has been shaped by generations of immigrants whose labour, enterprise and innovation have contributed to its growth and prosperity,” he added.

The Ministry earlier described the “indentured servants” terminology as “deeply offensive,” noting that it carries painful historical and colonial connotations.

Vance had claimed that H-1B workers earn significantly less than American citizens in similar roles and accused foreign outsourcing firms of replacing US workers to undercut wages. He used the phrase “indentured servants” while criticising the practice.

Separately, the MEA addressed the US Department of Labor’s decision to suspend certain companies from the Permanent Labor Certification (PERM) programme. It clarified that PERM is distinct from the H-1B visa system.

“The suspension of PERM applications does not, by itself, affect the validity of H-1B visas or the status of H-1B visa holders and their dependents,” the Ministry said.

“However, it could have some impact on the permanent residency, or green card, process for eligible employees of the affected companies,” it said.

The US Labor Department had announced the suspension for several large IT firms, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, as well as Microsoft and Adobe, citing ongoing federal investigations. Officials linked the move to the high volume of foreign-worker requests by these companies over the years.

The MEA stressed that talent mobility benefits both countries. It creates opportunities for skilled Indians while supplying US companies with specialised expertise that drives innovation, research, productivity, competitiveness and job creation.

“This is therefore an area of tremendous mutual benefit for the two countries and our expectation is that all stakeholders in this process can appreciate this fact,” the Ministry stated, adding that the recent US steps do not advance the shared ambitions of both nations.