While the impact of the US suspension of PERM applications for eight technology firms, including Infosys, TCS and WIPRO, may not be immediately visible, the move could prompt many skilled Indian professionals to return home and encourage companies to expand technology operations in India.
To capitalise on this opportunity, India needs to strengthen research funding, improve research infrastructure, and speed up recruitment of skilled professionals and faculty members.
PERM stands for Program Electronic Review Management and is the first step in the employment-based green card process. Experts say the suspension’s immediate impact is likely negligible, as the affected Indian companies had already reduced their PERM applications.
In the first nine months of FY26, 13 major IT services companies filed 607 certified permanent labour certification (PERM) applications, down from 1,670 in FY25 and 1,756 in FY24, according to Kotak Institutional Equities. However, uncertainty over immigration policies and visa restrictions could lead to attrition among Indian professionals working in the US, potentially triggering a reverse brain.
“India could attract skilled researchers, faculty members and engineers if uncertainty over employment-based immigration policies in the US persists, potentially strengthening its high-tech sectors and research ecosystem,” says Prof Rangan Banerjee, director, IIT Delhi.
The impact will depend on whether the restrictions continue long term and how companies respond to the changing policy environment. “While the current situation has created uncertainty among Indian researchers and professionals considering opportunities in the US, India is better positioned than it was a decade ago to retain talent and attract those looking to return. A growing domestic market and an expanding innovation ecosystem could help India leverage this shift,” says Prof Banerjee.
Citing changes in student preferences at IIT Delhi, Prof Banerjee says, “The proportion of undergraduate graduates heading to the US for higher studies has declined significantly over the past decade. Today, in a batch of 3,000 graduates, fewer than 10% go to the US directly after graduation. Indian institutions and companies are offering opportunities to graduates with specialised skills, and this has reduced concerns about brain drain from IITs compared to a decade ago.
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With multinational companies operating global capability centres (GCCs) in India, some technology and research-related work could potentially be done from India rather than requiring employees to be based in the US. “Location is not necessarily an issue; companies could respond to the changing environment by reorganising their operations. Implications would be particularly relevant for high-tech sectors facing shortages of skilled professionals, where experienced researchers and engineers have multiple employment options,” says Prof Bannerjee.
“Ultimately, the movement of skilled professionals will depend on employment opportunities, research infrastructure, incentives and the broader economic environment. If US restrictions persist, India could gain a competitive advantage in attracting talent, but the extent of that advantage will become clearer only over time,” Prof Banerjee explains.
Retaining Talent
Industries such as semiconductor design, applied AI, advanced engineering, industrial R&D and deep-technology startups could stand to benefit from returning talent.
“In semiconductors, experienced professionals can help younger teams understand the entire journey from an idea to a reliable commercial product. In AI, the opportunity includes applying technology to manufacturing, healthcare, agriculture and education. The transition from laboratory research to a marketable product can be demanding. People who have navigated that journey internationally could contribute substantially in these domains.
IT services would also benefit from professionals with strong customer relationships and delivery experience. However, slow recruitment, uncertain research funding and excessive administrative hurdles may lead to some choosing another country,” says Prof V Ramgopal Rao, group vice-chancellor, BITS Pilani.
“We should create specific opportunities around returning expertise: research leadership positions, joint appointments with industry, startup support and access to laboratories.
A few experienced professionals, placed in the right environment, can strengthen an entire team,” he adds.
The green card process can be lengthy and frustrating, and the suspension of PERM applications may prompt Indian technology professionals to consider returning to India. “Many of these professionals could return with their accumulated savings and take up positions in multinational corporations or Indian companies.
Others may leverage their international experience and expertise to establish startups,” says Arjun Malhotra, IIT KGP alumni, co-founder HCL Technologies, and chairman, EPIC Foundation.
Furthermore, the changing H-1B visa rules add to the uncertainty for Indian students considering higher education in the US. “For several students and parents, education in the US is a huge investment and the ability to gain international work experience after graduation is important.
Any rule change that reduces these opportunities will affect their decision-making. That said, it may not deter Indian students from considering the US for higher education. Its educational ecosystem still offers value through research opportunities and industry exposure. Students need to be more realistic about their post-graduation job prospects and look beyond the H-1B visa and long-term settlement options. Moreover, factors such as employer sponsorship, internship opportunities and alternative career paths will play a larger role,” says Sanjay Laul, founder, MSM Unify.
