With reference to the US labour certification programme, consider the following statements: 1. The suspension aims to protect American workers from being shut out of the job market. 2. The US suspended a total of eight IT firms from the programme. 3. TCS filed a total of five PERM applications in 2026. Which of the statements given above is/are correct?

US suspends TCS, Infosys and 6 other IT firms from permanent labour certification programme

GS3Economy · S&T · Environment · Security· External sector, trade & FDI· Prelims + Mains· 11 October 2026

Impact of protectionist trade policies on Indian IT services and human capital mobility: a GS3 Economy case study.

Why in news

The US suspended eight IT firms, including TCS and Infosys, from the permanent labour certification programme to protect American workers from being shut out of the job market.

Background

The US suspended eight firms: TCS, Infosys, Wipro, HCL, Capgemini, Cognizant, Microsoft, and Adobe. NASSCOM noted that TCS filed only two PERM applications in 2026.

Facts for Prelims

FactTCS filed only two PERM applications in 2026
FactEight firms suspended: TCS, Infosys, Wipro, HCL, Capgemini, Cognizant, Microsoft, and Adobe

Prelims practice question

With reference to the US labour certification programme, consider the following statements:

The suspension aims to protect American workers from being shut out of the job market.
The US suspended a total of eight IT firms from the programme.
TCS filed a total of five PERM applications in 2026.

Which of the statements given above is/are correct?

(a)1 only
(b)1 and 2 only
(c)1 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: TCS filed only two PERM applications in 2026.

For Mains

Q. Discuss the implications of restrictive US labor certification policies on the Indian IT services sector and the growing trend of 'protectionist' trade policies in the global tech landscape.

Dimensions to cover in your answer

Labor market friction: Conflict between globalized talent mobility and domestic job protectionism
Regulatory risk: Impact of unilateral US labor policy shifts on Indian IT outsourcing business models
Strategic shift: Potential for Indian firms to pivot towards local hiring to mitigate certification hurdles

Keywords: Protectionism · Labor Certification · Outsourcing · Trade Policy · Human Capital Mobility

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