The Congress party expressed its worries on Tuesday about a new Bill recently introduced in the US Senate. This Bill aims to impose a 25% tax on payments made by American companies for outsourcing jobs to other countries, which could significantly affect India’s IT, consulting, and BPO sectors.
Jairam Ramesh, a Congress leader, shared his thoughts on social media about the “Halting International Relocation of Employment Act,” known as the “HIRE Act,” introduced by Senator Bernie Moreno from Ohio on October 6, 2025. This Bill has been sent to the Senate Committee on Finance for further evaluation.
According to Ramesh, the Bill targets any US person or company that makes an “outsourcing payment,” which is defined as any payment to foreign individuals or businesses to fulfill work that benefits American consumers.
The Congress leader described this legislation as evidence of a growing negative sentiment in the US towards outsourcing jobs to India. He highlighted that while the proposal might face changes or might not even pass, it reflects a larger trend that India must take seriously.
Ramesh pointed out that if the Bill becomes law, it would greatly affect India’s successful IT services, BPO industry, and global capability centers. Countries like Ireland, Israel, and the Philippines would also feel the impact, but India would face the most significant challenges, affecting its service exports, which have flourished over the past 25 years.
He further noted that this proposed legislation shows a rising protectionist attitude in the US, with a belief that while blue-collar jobs may have moved to China, white-collar jobs should remain in the US.
The Congress leader mentioned that the economic ties between India and the US, once considered a strong foundation for mutual growth, have struggled in the past year, with the HIRE Act being the latest hurdle. He concluded by stating that if the HIRE Act is enacted, it could spark significant changes in the Indian economy, which may have to adapt to a new reality in its relationship with the US.
