Anthony D’Esposito, Department of Labor Inspector General, speaks as Vice President JD Vance listens during a news conference on the Fraud Task Force. (AP Photo)
On October 8, the Trump administration suspended eight major technology companies, including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL, Capgemini, Microsoft and Adobe, from the Permanent Labor Certification, or PERM, programme. He also claimed that 75 per cent of Cognizant employees in the US were Indian nationals and pointed out that Infosys, Tata, Wipro and HCL were based in India. However, a community note attached to Johnson’s post pointed out that Indian stock markets had closed hours before the US administration announced the restrictions on October 8.
Because of the administration’s action against the tech companies, reacting to the restrictions, Johnson claimed that the Indian stock market had crashed. Because of this development, earlier reporting noted: American right-wing political commentator Benny Johnson then took to X to claim that the Indian stock market had completely crashed.
Anthony D’Esposito, Inspector General of the US Department of Labor, reacted to a post by American conservative commentator Benny Johnson on X with the words “Ruh roh”. The post claimed that India’s stock market had “completely COLLAPSED” after the Trump administration suspended major technology companies from a programme linked to employment-based green cards. “The largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini were removed from the Permanent Labor Certification Program,” Johnson wrote on X. Johnson further alleged that these companies had sought millions of foreign workers over the years and questioned whether India’s economy was based on “scamming” the US.
A top US official has faced online criticism after appearing to endorse a false claim that India’s stock market had collapsed following the Trump administration’s latest restrictions on foreign workers, including Indian IT professionals. Social media users criticised the response, with some accusing the official of amplifying misinformation about India. The move came amid the administration’s broader efforts to curb what it alleges is the misuse of foreign worker programmes at the expense of American workers. PERM is a key step in the employment-based green card process. Employers seeking to sponsor most foreign workers for permanent residence must generally obtain certification from the Labor Department that there are not enough qualified, willing and available American workers for the position and that hiring a foreign worker will not adversely affect US wages and working conditions. This undermined the claim that the announcement had caused the market to crash that day. D’Esposito’s brief response to Johnson’s post prompted criticism from users who questioned why a senior US official appeared to engage with a claim contradicted by the community note. “How do you became inspector general, without even knowing the facts? Read the community notes,” one user wrote. Another user criticised the apparent amplification of the claim, writing: “Top US official is spreading fake news that Indian markets collapsed.
And they have the gall to call Indians ‘scammers.’” Earlier reporting noted: Top US official shares fake news on Indian stock market collapse over green card curbs A top United States official is being called out for amplifying false information about the Indian stock market crashing in wake of the latest US immigration curbs. Earlier reporting noted: Johnson shared a graphic falsely claiming that the stock of Indian companies like Reliance, SBI, LIC and many more fell after the Trump administration’s latest curbs. Anthony D’Esposito, Inspector General of the United States Department of Labor, reacted to a post on the social media platform X falsely claiming that “the Indian stock market completely COLLAPSED today after the Trump Administration suspended H-1B and foreign labor programs over fraud.
On Friday, October 9, the Sensex and Nifty rebounded in early trade after two sessions of losses. The 30-share BSE Sensex rose 292 points to 71,876.10, while the NSE Nifty gained 84.60 points to 22,310.40. Tata Consultancy Services (TCS) shares surged more than 4 per cent after the company reported a 15 per cent year-on-year rise in net profit to Rs 13,884 crore.
The latest PERM suspensions could affect the green card sponsorship process for employees of the companies involved, although the move does not, by itself, mean that all their Indian employees have lost their jobs or visas. Infosys, HCL Tech and Tech Mahindra were also among the gainers. The controversy comes amid heightened scrutiny of Indian technology companies and foreign worker programmes under the Trump administration. You use AI every day. Now get your AI Quotient. Take the AIQ test.
the decline was attributed to rising crude oil prices, the Reserve Bank of India’s rate hike, and foreign investor outflows While Indian benchmark indices fell sharply on Thursday.