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Senior Congress leader Jairam Ramesh has warned about the economic implications of the proposed Halting International Relocation of Employment (HIRE) Act in the United States, saying it could seriously affect India’s services-export economy. The bill, introduced in the US Senate by Senator Bernie Moreno, seeks to impose a 25 percent tax on payments made by American companies to foreign entities for outsourced work. The goal of the legislation is to discourage outsourcing and protect domestic employment, particularly in white-collar sectors.
Ramesh said that if the bill becomes law, it would disproportionately impact India’s $200-plus billion services industry, including the IT, business process outsourcing, consulting, and global capability centre sectors, which rely heavily on contracts from the US market. He argued that the proposed tax reflects a shift toward protectionist economic thinking in the United States, similar to past concerns over blue-collar job losses to China.
While acknowledging that the bill may be modified or stalled in the Senate Committee on Finance, Ramesh stressed that its very existence signals rising challenges in the economic ties between India and the US. He warned that, if enacted, the HIRE Act could force India to adapt to a new economic reality with significant consequences for service-sector growth and exports.
