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Indian IT firms are unlikely to face near-term fallout from \u200cthe US suspension of a key green-card programme, as major technology companies have reduced their dependence on this route for employment, analysts said on Friday.<\/strong><\/p>\n Washington\u2019s move, targeting the Permanent Labor Certification programme, is part of a broad effort to reduce the number of foreign-born people in the US and curtail their \u200bpathway to residence and citizenship.<\/p>\n The steps do not advance both countries\u2019 shared ambitions, India\u2019s foreign ministry said on Friday.<\/p>\n \u201cWe have also \u200bseen some comments in this context by the US vice president. We believe that such descriptions \u2060are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its \u200beconomy and innovation ecosystem,\u201d the ministry said.<\/p>\n Vance had said, without citing specific evidence, that companies are using the PERM program to replace American employees \u200bwith foreign workers and undercut their wages.<\/p>\n ICICI Securities said that the development was negative for Indian IT stocks in the near to medium term, primarily because of a sentiment hit and longer-term talent retention concerns \u201crather than an immediate revenue impact.\u201d<\/p>\n Indian IT firms accounted for less than 2% of the PERM \u200bapplications filed between October 2024 and September 2025, the brokerage said, adding that prolonged uncertainty around residency could increase attrition among \u200bUS-based workers.<\/p>\n Nasscom, India\u2019s IT body, said late on Thursday that firms had significantly reduced their dependence on H-1B visas in recent years while expanding local \u200chiring \u2060in the US.<\/p>\n Relatively few workers move from H-1B visas to permanent residency through PERM, Nasscom said.<\/p>\n The US curbs target Microsoft, Cognizant, Infosys, Tata Consultancy Services, Wipro new tab, HCL Technologies and Capgemini.<\/p>\n TCS, India\u2019s largest IT services exporter, said it did not expect the suspension to affect its workforce strategy or client engagements, citing single-digit PERM applications over the past two years.<\/p>\n India\u2019s IT index rose about 3%, led by \u200bTCS, which gained after upbeat second-quarter results. Both IT \u200bindex and TCS logged their \u2060biggest percentage rise in six weeks on Friday. The overall market value of the 10 constituents in the IT index rose 701.336 billion rupees ($7.25 billion).<\/p>\n The US move comes against the backdrop of \u200bAI-led disruption to India\u2019s $315 billion IT industry, months after the Donald Trump administration increased fees for \u200bthe H-1B visa program, \u2060which US employers use to hire skilled foreign workers.<\/p>\n IT stocks are the worst performers in India this year, slumping 25%, compared with a 14% drop in the benchmark. The firms rely on the US market for a bulk of their revenue.<\/p>\n \u201cIndian IT stocks are already operating \u2060under pressure, \u200band this additional regulatory development adds another layer of uncertainty for the \u200bsector,\u201d said Sumit Singhania, head of research at Bajaj Broking.<\/p>\n Companies could face higher hiring and compliance costs as they increasingly rely on US talent and subcontracting, potentially weighing \u200bon margins, Singhania said.<\/p>\n \u00a0<\/p>\n<\/div>\nUNCERTAINTY AHEAD<\/strong><\/h3>\n