IRGS2+ GS3

US Visa and Tariff Moves Add Strain to India-US Trade Ties

Indian Express, The Hindu·2026-10-13

"US Visa and Tariff Moves Add Strain to India-US Trade Ties"

Prelims Facts

  • •The PERM programme certifies that no qualified US worker is available. Then an employer can sponsor a foreign worker for a green card.
  • •The US imposed a $100,000 fee on new H-1B visa petitions. This raises costs for firms hiring skilled foreign workers.
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Key Terms

PERM programme

US labour-certification process an employer completes before sponsoring a foreign worker for permanent residency

H-1B visa

US temporary work visa for skilled foreign professionals in specialty occupations

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Study Note

BackgroundCore Concept

Background

The PERM programme (Program Electronic Review Management) is the US Department of Labor's labour-certification process. An employer must clear it before sponsoring a foreign employee for permanent residency (a 'green card'). A PERM certificate proves that no qualified US worker is available for the role. This allows legal sponsorship of a foreign employee. It has long been a key pathway for Indian IT professionals. They work in the US on temporary visas and want to settle there. The H-1B visa is the main US work visa for skilled foreign professionals. Indian nationals have historically received the largest share of these visas.

Global Labour-Mobility Consultative Platforms
Voluntary, non-binding global platforms
labour-mobility consultation
Colombo Process
Abu Dhabi Dialogue
Global Forum for Migration and Development
GFMD

US immigration policy has tightened sharply over the past year. A $100,000 fee was imposed on new H-1B visa petitions. This raises costs for companies that depend on skilled foreign staff. Several major Indian IT firms were recently suspended from the PERM programme. This is part of a wider push to restrict foreign labour pathways. Globally, labour mobility between countries is usually managed through voluntary, non-binding consultative platforms. Unilateral restrictions are less common. The Colombo Process brings together Asian labour-origin countries. They discuss safe migration. The Abu Dhabi Dialogue links labour-origin and labour-destination countries in Asia. The Global Forum for Migration and Development (GFMD) was proposed by a former UN Secretary-General. It is a voluntary forum with non-binding outcomes. None of these bodies can force a state to keep its labour market open. This is why a single country's domestic policy shift, like the one by the US, can disrupt mobility without violating any treaty.

The Topic Explained

The suspension of Indian IT firms from PERM and the H-1B fee increase are two parts of a broader US strategy. The US wants to reduce dependence on foreign skilled labour. It wants to encourage domestic hiring. Indian IT companies operate on a model where consultants are placed with US clients. They often move from temporary visas to permanent residency through PERM sponsorship. Restricting this pathway raises the cost and uncertainty of operating in the US market for these firms. For now, the direct numerical impact is limited. …

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Related PYQs

2026GS1 Prelims

Consider the following statements about platforms for multilateral co-operation:

1.The 'Colombo Process' is a regional consultative process in which member states take binding decisions by consensus.

2.The 'Abu Dhabi Dialogue' is a voluntary non-binding consultative process among Asian countries of labour origin and destination to facilitate regional cooperation on contractual labour mobility.

3.The 'Global Forum for Migration and Development', created upon the proposal of a former UN Secretary General, is a voluntary forum whose decisions are non-binding in nature.

Which of the statements given above is/are correct?

A1, 2 and 3
B1 and 3 only
C2 and 3 only
D2 only
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2023GS2 Mains

Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India.

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Practice MCQs

IRhard

Consider the following statements regarding multilateral platforms on labour migration:

1.The Colombo Process is a binding treaty mechanism among labour-sending Asian states.

2.The Abu Dhabi Dialogue links labour-origin and labour-destination countries in Asia through a non-binding consultative process.

3.The Global Forum for Migration and Development issues decisions that are binding on member states.

Which of the statements given above is/are correct?

A1 only
B2 only
C1 and 3 only
D2 and 3 only
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IRmedium

The 'PERM' programme, often mentioned in the context of Indian IT professionals in the United States, refers to which of the following?

AA US visa lottery system for skilled foreign workers
BA labour-certification process that precedes employer sponsorship for US permanent residency
CA bilateral India-US agreement on technology transfer
DA US tariff mechanism applied to IT service imports
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IReasy

A recent US law permits tariffs of up to 100% on countries that are major buyers of which commodity from Russia?

ANatural gas
BCrude oil
CWheat
DRare earth minerals
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IReasy

The US fee of $100,000 introduced recently applies to which category of visa?

AL-1 intra-company transfer visa
BH-1B specialty occupation visa
CF-1 student visa
DB-1 business visitor visa
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IRmedium

With reference to India's software and services exports, consider the following statements:

1.They are a significant source of foreign exchange for India.

2.They exceeded $200 billion in value in 2025-26.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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