Context:

• India-US ties are facing intense scrutiny following the US’s recent announcement suspending the Permanent Labour Certification (PERM) programme for eight global IT companies — including Indian-headquartered firms: Infosys, Tata Consultancy Services (TCS), Wipro, Cognizant, and HCL.
• Washington accused these companies of misusing immigration and labour-certification systems.
• In this context, this article argues this episode is not isolated, but part of a broader pattern of American pressure and unilateralism that India must now firmly resist.

The PERM Suspension: What Happened?

• PERM allows tech companies to hire non-US professionals, serving as a step toward employer-sponsored green cards.
• As per the US government, the named companies had received over 2,30,000 H-1B visa approvals and more than 1,00,000 permanent labour certifications since 2009.
• Indian professionals account for over 70% of approved H-1B petitions annually — making this suspension disproportionately impactful for India.
• This follows a broader pattern of ill-treatment and racist incidents against Indians in the US, straining bilateral relations further.

Trade Ties: A Visible Source of Discord

• Three key friction points define the trade relationship:
  • Trade Surplus Imbalance: India recorded a $33.8 billion trade surplus in bilateral trade exceeding $140 billion in FY 2025-26.
  • Agricultural Market Access: The US seeks entry into India’s dairy and agriculture sectors — a politically sensitive concession India cannot afford to make.
  • Russian Oil Imports: India has refused to halt these despite additional US tariffs and sanctions.
• Despite a February 2026 framework for an interim reciprocal trade agreement, tensions persist.
• Finance Minister Nirmala Sitharaman recently noted that trade negotiations have “plateaued,” with little room for compromise.

Defence Cooperation: Agreements Without Delivery

• Defence has been a key pillar of the relationship, but the critics argue its substance lags its symbolism:
  • Since 2002, India has acquired over $22 billion worth of American military hardware — yet meaningful co-production and technology transfer remain elusive.
  • During PM Modi’s February 2025 Washington visit, the US agreed to expand defence sales/co-production, including Javelin anti-tank guided missiles and Stryker infantry combat vehicles.
  • The two nations signed a 10-year Framework for the US-India Major Defence Partnership in October 2025.
  • However, prolonged delays in supplying GE F404 engines for India’s Tejas fighter aircraft expose the risks of foreign supply-chain dependence.
  • Despite the India-US Defence Acceleration Ecosystem (INDUS-X) (launched 2023), real co-development and tech transfer remain limited.

The Pakistan Factor

• Pakistan remains a politically sensitive irritant:
  • Since Operation Sindoor (May 2025), President Trump’s repeated claims of having “ended” the India-Pakistan conflict have irked India, though New Delhi has avoided direct confrontation.
  • The US’s courting of Pakistan’s military leadership, particularly Chief of Defence Forces Asim Munir, is a major concern.
  • The Mecca Pact between Saudi Arabia, Pakistan, and Türkiye — reportedly backed by Washington — has raised further security concerns for India.

Technology Cooperation: Promises on Paper

• The 2008 India-US civil nuclear agreement was historic, but its promise of American-designed nuclear reactors in India remains largely unrealised.
• The Initiative on Critical and Emerging Technology (iCET) (launched 2023) aimed to deepen cooperation in AI, semiconductors, defence innovation, and space — but much remains undelivered.
• The India-US TRUST Initiative (Transforming the Relationship Utilizing Strategic Technology), signed in February 2025, similarly raised hopes that remain largely unfulfilled.
• Core challenge: Translating declarations into measurable outcomes.

The Core Argument: Need for Mutual Respect

• India-US relations are entering a phase where India’s strategic restraint and accommodation are increasingly met with American pressure, unilateralism, and disregard for India’s interests.
• Analysts argue that ties between “the world’s oldest democracy and the world’s largest democracy” can only flourish through equality, respect, and trust — not unilateral imposition of will.
• EAM S. Jaishankar’s observation that the US is “deliberately becoming a lonelier power” is cited as potentially carrying deeper significance about shifting global alignments.

Conclusion

• The PERM suspension is less a standalone dispute than a symptom of a deeper pattern — one where repeated US actions on trade, defence, Pakistan, and technology reveal a transactional, often one-sided approach to a relationship both sides call strategic.
• For India, the message is clear: genuine partnership cannot be built on accommodation alone.
• As New Delhi navigates this phase, its challenge will be converting strategic restraint into strategic leverage, ensuring that mutual respect — not unilateral pressure — defines the terms of engagement going forward.