India's Ministry of External Affairs (MEA) has sharply criticised US Vice President JD Vance for describing H-1B visa holders as "indentured servants", calling the remark deeply offensive and insensitive to the historical and colonial associations of the term.

In a strongly worded statement, the MEA said such language disregards the reality that Indian professionals in the United States are highly skilled, well-educated contributors to the country's economy, technology sector and innovation ecosystem.

The ministry noted that the United States itself has been built and strengthened over generations by immigrants whose work, entrepreneurship and innovation have helped drive growth and prosperity. It said references carrying painful colonial-era connotations were inappropriate and unacceptable.

The response followed remarks made by Vance during a press conference focused on visa fraud. He argued that some companies use foreign workers to reduce labour costs, claiming H-1B employees are paid less than American workers performing similar roles.

Vance stated that H-1B visa holders earn around $20,000 less than US citizens in equivalent positions and alleged that workers employed through foreign outsourcing firms earn approximately $48,000 less than comparable American employees. He accused corporations of replacing domestic workers with foreign labour in order to lower wage costs and increase profits.

The MEA also addressed the US Department of Labor's recent action concerning the Permanent Labor Certification (PERM) program. It emphasised that PERM is separate from the H-1B visa system and that the suspension of PERM applications for certain companies does not automatically affect existing H-1B visa holders or their dependants.

However, the ministry acknowledged that the move could have implications for permanent residency and Green Card applications involving eligible employees of affected firms.

Reaffirming India's position on global talent mobility, the MEA said the movement of skilled professionals benefits both countries by supporting innovation, research, productivity, competitiveness, employment and shareholder value.

The ministry argued that Indian professionals create opportunities not only for themselves but also for American businesses that rely on specialised talent to remain globally competitive. It added that the latest US measures do not support the broader strategic and economic ambitions shared by India and the United States.

India said it would continue to monitor developments related to the issue.

The controversy comes after US Labour Secretary Keith Sonderling announced the suspension of several major technology and outsourcing firms from the Permanent Labor Certification program. The affected companies include Cognizant, Infosys, TATA, Wipro, HCL and Capgemini. US technology companies Microsoft and Adobe were also suspended from the program.

According to the US Department of Labor, the suspensions are linked to multiple active federal investigations.

Sonderling said the companies involved had collectively requested nearly three million foreign workers since 2009 and had received more than 2,30,000 H-1B visa approvals as well as over 1,00,000 permanent labour certifications. He argued that these figures reflected jobs that could otherwise have gone to American workers.

The announcement followed a separate proposal by the US Department of Homeland Security to introduce new fees for F-1 international students seeking Optional Practical Training (OPT), a measure the administration said is intended to protect American workers and strengthen immigration system integrity.

Agencies