Are Indian pros ‘indentured servants’ of the US ?

Indian professionals cannot be treated as “indentured servants” by the USA. India’s relations with the United States are important for trade, technology, defence, energy, and education. Another point is: international cooperation cannot mean overlooking disrespectful remarks, compromising regulatory autonomy or altering domestic policies merely to accommodate powerful foreign corporations. The third point is: Economic partnerships must rest on mutual respect, reciprocity, and protection of national interests.

Recent remarks attributed to Elon Musk concerning Prime Minister Narendra Modi and the influence of the Ambani Group, along with US Vice-President J D Vance’s reported reference to Indian H-1B professionals as “indentured servants”, have raised questions about India’s dignity in international relations. The issue goes beyond the language of individual public figures. It concerns how India formulates policies on satellite communications, taxation, digital infrastructure and nuclear energy.

Indian national dignity vs the US:

In a representation to the Cabinet Secretary, former Union Government Secretary E A S Sarma has urged the government to reconsider certain permissions and concessions extended to American companies. His suggestions include reviewing StarLink’s permissions, examining tax benefits for foreign data-centre operators and reassessing the terms for importing American nuclear reactors. Each proposal requires independent legal and economic scrutiny. Nevertheless, his broader questions about national sovereignty, public accountability and policy autonomy deserve serious consideration.

Satellite spectrum-A public resource:

The controversy involving StarLink and Reliance Jio in October 2024 raised an important question: should satellite spectrum be allocated through administrative procedures or competitive auctions?

Following Musk’s objections to the auction route favoured by Reliance, reports indicated that the government preferred administrative allocation for satellite spectrum. Sarma wrote to the Department of Telecommunications, arguing that the debate appeared to be influenced by competing corporate interests rather than a comprehensive assessment of national priorities.

Spectrum is a scarce public resource. Its allocation must balance efficient utilisation, competition, affordability, technological development and national security. In the 2G spectrum case, Centre for Public Interest Litigation v. Union of India (2012), the Supreme Court emphasised transparency and non-arbitrariness in allocating natural resources. However, the judgment should not be interpreted as requiring auctions for every resource in every circumstance. The process must be fair, transparent and rational within the applicable legal framework.

New media law and the 2023 Telecommunications Act:

The Telecommunications Act, 2023 permits administrative assignment for specified services, including certain satellite-based services. Therefore, administrative allocation cannot be considered unlawful merely by invoking the 2G judgment. The government must explain why its chosen approach serves the public interest and prevents arbitrary advantages to select few operators.

A security threat in India:

Sarma also raises national-security concerns because StarLink operates an internationally connected satellite network and has provided services in sensitive geopolitical circumstances. Such involvement does not, by itself, establish a security threat in India. Nevertheless, licensing conditions must protect strategic communications, lawful interception, network security and emergency access. Defence requirements, ISRO’s interests and consumers’ needs must receive adequate consideration.

The question is not whether Musk or Ambani should prevail in a commercial contest. It is whether India’s spectrum policy protects the public interest without favouring either corporation.

Diplomacy and the dignity of public office:

Modi’s meeting with Musk in the United States in February 2025 attracted considerable attention. Engagement with prominent investors is not inherently objectionable. Governments routinely meet business leaders whose decisions can influence technology, investment and employment.

The concern arises when such engagements appear to confer exceptional importance on individual corporate leaders without sufficient transparency about the public objectives. Meetings must advance identifiable national interests and must not create an impression that privileged political access can substitute for established regulatory procedures.

Musk’s reported remarks about Modi and the influence of the Ambani Group should be examined in context. If a foreign business leader questions the independence of India’s political executive, the government may reasonably seek clarification. But its response should be guided by evidence, constitutional principles and national interest rather than personal affront.

H-1B professionals and reciprocal respect:

Vance’s reported description of Indian professionals working in the United States on H-1B visas as “indentured servants” has understandably caused offence.

At the same time, India must distinguish between offensive rhetoric and another country’s legitimate authority to administer its immigration laws. Deportations and the treatment of individuals during removal must comply with applicable legal obligations. Where Indian nationals are treated in a degrading manner, the government should seek explanations, provide consular assistance and pursue appropriate diplomatic remedies.

Reciprocity requires consistent insistence on mutual respect and fair treatment. Indian professionals’ contributions should not be diminished by political rhetoric.

Data-centre tax holidays-what does India gain?

The Union Budget announced a tax-holiday framework extending to 2047 for qualifying foreign companies providing specified global cloud services through data centres in India, subject to applicable conditions. The objective is to attract investment, strengthen digital infrastructure and position India as a major computing hub. Yet the scale and duration of these incentives demand scrutiny and boost to infra.

Sarma questions whether the concessions offered to foreign data-centre operators are proportionate to the benefits India receives. The government should disclose the expected investment, employment, local procurement, infrastructure costs and environmental obligations. A tax concession estimated over several decades is not necessarily an immediate government payment or a guaranteed loss of the entire amount. Its fiscal cost depends on the law, qualifying activities, taxable income and revenue that would otherwise have been collected. Nevertheless, long-term concessions should be periodically evaluated against measurable public benefits.

Data sovereignty also requires attention. Hosting servers in India does not automatically guarantee control over data. Ownership, encryption, access rights, contractual arrangements, applicable foreign laws and the ability of Indian authorities to enforce domestic law all matter.

Nuclear energy:

Dr Homi Jehangir Bhabha laid the foundations of India’s indigenous nuclear programme and envisioned the development of domestic scientific expertise and long-term self-reliance in atomic energy.

International cooperation has also contributed to India’s nuclear development. The India–United States civil nuclear agreement opened opportunities for technological collaboration and fuel supplies. Such cooperation need not undermine self-reliance if India retains domestic expertise, regulatory independence and the ability to negotiate terms that serve its long-term interests.

The SHANTI Act, which replaced the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, has raised questions about the distribution of risk between operators, suppliers and the public. Sarma argues that changes to liability arrangements favour foreign reactor manufacturers and could weaken incentives to maintain the highest safety standards.

Nuclear accidents can impose immense costs on communities, public finances and the environment. Liability rules must provide effective compensation, preserve accountability and encourage safe reactor design and operation.

India should neither reject foreign technology simply because it originates in the United States nor accept contractual and legislative arrangements without rigorous scrutiny. The test should be whether cooperation improves energy security, strengthens domestic capabilities and maintains enforceable safety standards.

Reciprocity must be institutional, not emotional:

Sarma’s proposals to review Starlink’s permissions, among others, raise legitimate questions about the terms of India’s economic relationships. Revoking a licence solely to retaliate against a corporate leader’s offensive remark could undermine regulatory fairness and legal certainty. A review based on national security, licence compliance or demonstrable public-interest concerns would have a different foundation.

India’s relationship with the United States remains important in technology, defence, energy, education and scientific research. A mature partnership must accommodate disagreements without either country treating the other as subordinate. National dignity is not measured by the number of permissions revoked after an insult. It is reflected in the independence of public institutions, the fairness of regulatory decisions, the protection of citizens and the capacity to negotiate agreements on terms that serve the country.

India should welcome foreign investment without compromising transparent governance, encourage technological cooperation without abandoning strategic autonomy, and protect its citizens abroad through lawful and effective diplomacy.

Cooperation with the United States, or any other country, must be reciprocal, accountable and consistent with India’s constitutional values and long-term public interest.

(The writer is a former Registrar of NALSAR University of Law)

ABOUT THE AUTHOR

Prof Madabhushi Sridhar Acharyulu

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