The Lift Line
“In the midst of these developments, statements from both sides appear to be less sanguine about the conclusion of the much delayed India-US trade deal.” (Editorial, The Indian Express, 12 October 2026)
Why This Editorial Matters for Your Exam
This is an unsigned editorial in The Indian Express of 12 October 2026, so it gives the paper’s own view. It joins four threads into one argument: a US move against green-card applications from eight employers, an earlier fee on H-1B visas, a new US law on tariffs against buyers of Russian energy, and a much delayed trade deal. The claim that these form a “pattern” is the paper’s reading.
Read it with our related pages: the green-card freeze and what it means for India, the US licence for Russian diesel, India’s case on the US sanctions law on Russia and Iran and the news item on the green-card suspension.
GS Paper 2: India-US relations; effect of the policies and politics of developed countries on India’s interests; the Indian diaspora. GS Paper 3: services exports and the external sector; energy security. Prelims: PERM, green card, H-1B, OFAC general licence, secondary tariffs, CREA.
In the news: in an editorial on 12 October 2026, The Indian Express argues that the US move to stop processing green-card labour certification (PERM) applications from eight employers, among them Infosys, TCS, Wipro and HCLTech, opens another front in India-US ties, alongside a new US law on tariffs against buyers of Russian energy and the much delayed trade deal.
Background and Context
What the US did
| Point | Detail |
|---|---|
| When and where | 8 October 2026, at a White House event, as reported by Reuters |
| What | No new PERM applications accepted, and pending ones not processed, for eight employers |
| Who | Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini |
| Not all Indian | The editorial speaks of “major Indian IT firms”, but the eight include Microsoft and Adobe |
| Official words | A senior official: “We will not accept any new or process any pending permanent labour certification applications involving these companies” |
| Stated reasons | Alleged fraud and a push to hire more Americans, as cited by US officials; these are allegations |
| What stays | Existing H-1B status is not suspended. The announcement did not say how PERM certifications already approved will be treated; immigration lawyers advise that an approved I-140 is not automatically invalidated |
The terms you need
| Term | Meaning |
|---|---|
| Green card | US permanent residency |
| PERM | Permanent labour certification, a step towards an employment-based green card |
| I-140 | An immigrant petition filed after PERM certification; lawyers advise that an approved I-140 is not automatically invalidated by the freeze |
| H-1B | A US visa for skilled foreign workers; the PERM freeze does not suspend H-1B status |
The editorial’s figures (as the paper states them)
| What | The paper’s figure |
|---|---|
| Indian IT firms’ share of PERM applications | Less than 2 per cent of 1,17,849 filed between October 2024 and September 2025, citing a report by ICICI Securities |
| India’s software, business and other services exports | $221 billion in 2025-26 |
| Russia’s crude exports, December 2022 to August 2026 | China roughly half; India 37 per cent, citing the Centre for Research on Energy and Clean Air (CREA) |
| H-1B fee | $100,000, introduced by the US administration “last year” (Proclamation of 19 September 2025). A federal district court vacated the fee policy on 8 June 2026 and the appeals court refused a stay on 24 July, so the fee is not being collected |
Our 10 October page on the green-card freeze used a different measure, the combined share of PERM certifications of all eight employers. Do not mix the two figures.
The two energy moves
| Move | What it does | What it does not do |
|---|---|---|
| US law on Russian energy buyers (Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, H.R. 5334) | Signed on 18 September 2026 (Public Law 119-111). Within 30 days of enactment the President “shall” raise duties, “up to 100 percent”, on goods from a country that was among the five largest importers of Russian crude oil or natural gas in the prior 12 months and knowingly makes new purchases on or after the 30-day mark (18 October 2026), or that was among the top five countries facilitating Russian oil sanctions evasion (s.113(c)); the President may waive them after certifying a waiver is “in the national interests of the United States” | It does not itself impose a 100 per cent tariff on Indian goods; India is covered only if it keeps buying after the 30-day mark; the rate (up to 100 per cent) and any waiver rest with the President |
| OFAC General License 135 (issued 9 October 2026) | Authorises transactions in Russian-origin diesel until 7 April 2027 | It does not cover crude oil and is not a lifting of sanctions on Russia |
The Analysis
1. A pattern, in the paper’s view. The editorial reads the PERM move as part of a wider US agenda against foreign labour and immigration. It follows the $100,000 H-1B fee introduced, in the paper’s words, last year, “deepening the uncertainty for companies that rely more on skilled foreign workers”.
2. Who was named. The editorial writes of a decision to suspend “major Indian IT firms”, but the eight employers named at the White House event also include Microsoft and Adobe. Exam use: the measure targets named employers, not a nationality; say so precisely in answers.
3. A small direct hit, a real signal. Citing ICICI Securities, the paper says Indian IT firms filed less than 2 per cent of PERM applications in the year the report covers, so the immediate impact could be muted. Even so, “the action is likely to sour sentiment”, and, as the report puts it, “any extension into broader work-visa restrictions would pose a more material risk”.
4. Why services matter. India’s software, business and other services exports, which the paper puts at $221 billion in 2025-26, are a major source of foreign exchange. The latest US action, it says, “opens another front in a tumultuous India-US relationship”.
5. The energy front. The PERM move comes weeks after the passing of a new law that “paves the way for the US to impose tariffs of up to 100 per cent on countries like China and India that are top energy buyers from Russia”. Note the wording, and the law’s own: the duty is mandatory for a qualifying country (the President “shall” raise it, s.113(a)), but the rate is capped at 100 per cent, India qualifies only if it keeps buying Russian crude or gas after the 30-day mark, and the President may waive the duty (s.115).
6. The inconsistency. Trump has “been prodding India to reduce its purchases of Russian oil”, the paper notes, citing CREA data that India took 37 per cent of Russia’s crude exports, after China. Yet he announced “a deal with Russia only a few days ago to supply diesel to US and global markets”. The US licence issued on 9 October (General License 135) covers Russian-origin diesel only, for a limited period. In the paper’s words, the pattern “is hard to miss”.
7. A much delayed trade deal. US Trade Representative Jamieson Greer said a trade agreement was not “imminent”, the editorial reports, and India’s Finance Minister said that “both the sides have reached a plateau beyond which giving or taking might be very very difficult”. Greer’s remark was reported on 2 October 2026. Neither remark ends the talks; the paper reads both sides as “less sanguine” about concluding the “much delayed” deal.
8. Three fronts at once. The paper’s conclusion: with trade talks uncertain, pressure is mounting on energy, services exports and labour mobility together.
Data and Institutions Vault
Prelims-grade facts:
- PERM: permanent labour certification; a step towards an employment-based US green card (permanent residency).
- Employers named: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini.
- Not suspended by the freeze: existing H-1B status.
- Approved certifications: the announcement did not say how PERM certifications already approved will be treated.
- Approved I-140s: immigration lawyers advise that an approved I-140 is not automatically invalidated.
- H-1B: a US visa for skilled foreign workers.
- Secondary tariffs (US law): Public Law 119-111, signed 18 September 2026; s.113 makes the President raise duties, up to 100 per cent, on goods from a qualifying country.
- First route, s.113(c)(1): a top-five importer of Russian crude oil or gas that knowingly makes new purchases on or after 18 October 2026, the law’s 30-day mark.
- Second route, s.113(c)(2): a country among the top five facilitators of Russian oil sanctions evasion.
- Waiver: the President may waive the tariffs after certifying a waiver is “in the national interests of the United States”.
- OFAC General License 135: Russian-origin diesel only, not crude; valid until 7 April 2027; not a lifting of sanctions.
- CREA: Centre for Research on Energy and Clean Air, cited for the shares of Russia’s crude exports.
- India’s crude: India imports over 88 per cent of its crude oil.
- CAATSA precedent: Turkey was sanctioned in December 2020 for the S-400; India’s S-400 deal (October 2018) has not been sanctioned.
⚠️ Watch the trap: The eight employers include Microsoft and Adobe, so the freeze is not limited to Indian firms. The US law requires duties of up to 100 per cent only on a country that keeps buying Russian crude or gas after its 30-day mark; it does not itself impose them on India, and the President may waive them. General License 135 covers diesel only, not crude, and does not lift sanctions. The PERM freeze does not suspend H-1B status.
The Debate
| The paper’s case | The other side |
|---|---|
| The PERM move is part of a larger US agenda against foreign labour | US officials cited alleged fraud and a push to hire more Americans, and the list includes Microsoft and Adobe |
| The direct impact is small, but sentiment will sour | Existing H-1B status is not suspended and approved I-140s are less exposed; the harm depends on whether curbs widen |
| A new law paves the way for tariffs of up to 100 per cent on top buyers of Russian energy | The duty is mandatory only for a country that keeps buying after the 30-day mark; the rate (up to 100 per cent) and any waiver are the President’s, so no tariff on India follows automatically |
| The diesel deal shows US inconsistency | Washington could call a temporary diesel licence a response to market conditions, not a change of policy |
| The trade deal looks less likely | “Not imminent” and “a plateau” describe slow progress, not a breakdown |
How to Think About This
Separate the record from the reading. The record: a freeze on PERM applications from eight named employers, a US law on Russian-energy buyers, a temporary licence for Russian diesel, and cautious remarks on trade. The reading, that these form a pattern of pressure, is the paper’s. Use both in answers, and label each.
Be precise about targets and instruments. The PERM freeze names employers, not a country. The tariff law makes the duty mandatory for a qualifying country but caps the rate at 100 per cent, and the President may waive it. The diesel licence covers one product for a limited time. Precision here is what separates a strong GS2 answer from a loose one.
Think in linkages. Energy, services and mobility are separate files in negotiation, but leverage in one affects the others. The diesel licence gives India a point to make when it seeks a waiver; services exports and skilled mobility are what India most wants to protect in a trade deal.
For GS2, use this on India-US relations and the effect of developed countries’ policies on India’s interests. For GS3, use it on services exports, the external sector and energy security.
Diagram-in-Words
One move, three fronts
The paper’s case that pressure on India is mounting.
Takeaway Box
- Lift line: “In the midst of these developments, statements from both sides appear to be less sanguine about the conclusion of the much delayed India-US trade deal.”
- The argument: the US freeze on PERM applications from eight employers is part of a wider crackdown on foreign labour; with a new US law paving the way for tariffs on buyers of Russian energy and the trade deal “not imminent”, pressure on India is mounting on energy, services exports and labour mobility.
- Prelims hooks: PERM and the green card; H-1B; secondary tariffs of up to 100 per cent and the presidential waiver; OFAC General License 135 (diesel only); CREA; the CAATSA precedent.
- Ethics and interview angle: how should India defend the interests of its skilled workers abroad without harming a strategic partnership?
- Probable Mains question: “Examine the pressures on India-US relations across energy, services exports and labour mobility, and suggest how India should respond.”
Revision Flowchart
US IT Salvo: PERM, Oil Tariffs, Trade
Covers the terms, Prelims pointers and traps, Mains pointers, how to use it in answers and a practice question.
Sources: The Indian Express, editorial “US IT salvo opens new front for India” (12 October 2026); Ujiyari, the green-card freeze for eight employers; Ujiyari, the US licence for Russian diesel; Ujiyari, India and the US sanctions law on Russia and Iran.
Source: US IT Salvo Opens New Front: PERM, Oil Tariffs, Trade Deal — Ujiyari.com | Free UPSC & State PCS Editorial Analysis
