India objects to US Vice-President Vance calling H-1B holders 'indentured labour'

India's Ministry of External Affairs on Friday issued an official statement strongly objecting to a remark by US Vice-President J.D. Vance. The matter concerns people working in the United States on H-1B visas. The ministry said that calling these Indian technology specialists and skilled professionals "indentured labour" or "slaves" is highly objectionable and wrong. According to the ministry, the term recalls the painful history of colonial exploitation.

Speaking at a press conference in the US on visa fraud and employment, Vance had targeted H-1B visa holders. He had alleged that foreign outsourcing companies were taking away jobs from American citizens and bringing in cheap labour from abroad, pushing down the wages of American workers. The remarks had caused concern among lakhs of Indian IT professionals, engineers and technicians working in the US.

Vance had said: "If you work in the US on an H-1B visa, you are paid $20,000 less than an American citizen doing the same job. And if you have been hired by a foreign outsourcing company, that gap goes up to $48,000. Companies fire American workers and replace them with foreign workers who work for lower pay." The Ministry of External Affairs called this statement baseless and said it ignores the reality.

In its statement, the ministry said the history of the United States has been built on the hard work, dedication and innovation of immigrants from around the world. Indian professionals living in the US today are highly educated, skilled and experts in their fields. They do not merely hold jobs but make an important contribution to America's economic growth, its tech ecosystem and its innovation ecosystem. The ministry said comparing such skilled people to bonded labourers is very unfortunate and insults their hard work and talent.

The statement said: "The movement of skills and talent (Talent Mobility) benefits both countries. It gives Indians opportunities across the world, and American companies are also able to attract the best talent in the world. It promotes research, productivity, international competitiveness and the creation of new jobs in the US. It also helps increase the wealth of shareholders there."

The ministry also clarified a technical point. India is fully aware of the decision taken by the US Department of Labor regarding the permanent labour certification (PERM) programme of some companies. But, the ministry said, PERM and the H-1B visa are two entirely different things. The suspension of PERM applications does not for now affect the current status of Indian employees living in the US on valid H-1B visas, or of their families.

The ministry did add that employees of the companies affected by the decision may face some delay in their Green Card process. It also said the Government of India is in touch with the US administration on the matter and is committed to protecting the rights of Indian citizens.