With reference to the PERM programme and the Indian IT sector, consider the following statements: 1. The US Labour Department suspended PERM filings for several firms including Infosys, Wipro, and HCL Technologies. 2. The PERM programme is used to sponsor foreign workers for employment-based permanent residency in the US. 3. TCS reported an annualized AI revenue of $3.1 billion, which is less than 5% of its overall revenue. Which of the statements given above is/are correct?

Infosys and Wipro ADRs fall after TCS reports Rs 13,884 crore net profit

GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims· 8 October 2026

Impact of immigration policy on IT services sector: a GS3 Economy and International Relations case study.

Why in news

US administration suspended several Indian IT firms, including Infosys and Wipro, from the PERM programme following allegations of abuse and fraud.

Background

TCS reported a 15% year-on-year net profit rise to Rs 13,884 crore for the September quarter with an operating margin of 24%. The US Labour Department suspended PERM filings for Cognizant, Infosys, Tata, Wipro, HCL Technologies, and Capgemini.

Facts for Prelims

FactTCS reported an annualized AI revenue of $3.1 billion, crossing 10% of its overall revenue.
FactTCS reported a total contract value of $9.6 billion for the September quarter.
BodyPERM programme: A process used by employers to sponsor eligible foreign workers for employment-based permanent residency in the US.
FactInfosys ADRs fell 2.8% to $10.26 and Wipro ADRs dropped 2.5% to $1.63 following the TCS report.

Prelims practice question

With reference to the PERM programme and the Indian IT sector, consider the following statements:

The US Labour Department suspended PERM filings for several firms including Infosys, Wipro, and HCL Technologies.
The PERM programme is used to sponsor foreign workers for employment-based permanent residency in the US.
TCS reported an annualized AI revenue of $3.1 billion, which is less than 5% of its overall revenue.

Which of the statements given above is/are correct?

(a)2 only
(b)1 and 2 only
(c)2 and 3 only
(d)1, 2 and 3

Show answer

Answer: (b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The note states it crossed 10% of its overall revenue.

For Mains

Q. Discuss the implications of tightening US immigration policies on the operational model and growth trajectory of the Indian IT services sector.

Dimensions to cover in your answer

Dependency risk: High reliance on US-based contracts and H-1B visa pathways for skilled labor.
Regulatory friction: Impact of US 'America First' labor policies on Indian outsourcing business models.
Diversification necessity: Need to shift towards domestic markets and non-traditional service offerings.

Keywords: Capital Markets · Outsourcing · Immigration Policy · Foreign Direct Investment · Labor Certification

Read the full news →Source: Economic Times ↗

More Economy notes

Nomura cuts PB Fintech net profit estimates by 72% for FY28 after insurance reforms · 10 October 2026
Karnataka Form 7 applications rise by 19,376 amid alleged bulk deletions · 10 October 2026
Telangana to introduce 10 new generation policies for semiconductors and logistics · 9 October 2026
Karnataka wins award for 9 GW highest under-construction wind power capacity · 9 October 2026
DEA committee approves ₹5,000 crore KfW funding for Telangana-CRUTI sewerage project · 9 October 2026
Tech job losses reach 253,000 as India's GCC ecosystem grows to 2,117 centers · 9 October 2026

All Economy current affairs →

This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.