The diplomatic friction stems from Vance’s decision to suspend Microsoft from the Permanent Labour Certification Programme (PERM). The Vice President accused the tech giant of displacing American staff in favor of foreign hires, demanding that the firm prioritize domestic talent. Indian officials countered that such measures undermine shared strategic ambitions and ignore the competitive advantages gained through international research and innovation.
While the suspension of PERM applications specifically targets the path to permanent residency for affected employees, New Delhi clarified that current H-1B visa holders face no immediate threat to their status or legal stay. The ministry emphasized that talent mobility generates shareholder wealth and productivity for US companies, framing the current restriction as a counterproductive move that disrupts a mutually beneficial labor ecosystem.





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