Business EconomyPosted at: Nov 4 2025 11:02AM


Jairam Ramesh flags economic risks of US 'HIRE' Act

New Delhi, Nov 4 (UNI) Senior Congress leader Jairam Ramesh today issued a sharp warning over the potential economic fallout of the proposed Halting International Relocation of Employment (HIRE) Act in the US Senate, cautioning that the legislation could deliver a major blow to India's thriving IT, BPO, consulting, and Global Capability Center (GCC) industries.
The Bill, introduced by Senator Bernie Moreno, proposes a steep 25 percent tax on US companies outsourcing work to foreign entities, a move explicitly aimed at deterring the relocation of white-collar American jobs abroad.
In a statement on social media platform X, Ramesh highlighted the severe and disproportionate effect the law could have on India, which has been a global leader in services exports.
Ramesh said: "The Bill has a direct and deep impact on India's IT services, BPO, consulting, and GCCs. Other countries like Ireland, Israel, and the Philippines, too, will be impacted, but the maximum effect will be on India's exports of services, which have been a marked success story over the past quarter of a century.
Ramesh sees the proposed tax as a reflection of a growing protectionist sentiment in the US, similar to past anxieties over the loss of blue-collar manufacturing jobs to China. He suggests this new policy targets the "loss of white-collar jobs to India."
The Congress leader did not mince words about the potential consequences for the Indian economy should the legislation pass.
"If ever HIRE becomes a reality, it will light a fire in the Indian economy, which may have to face a new normal in relation to the US," he warned, highlighting the substantial economic disruption that would ensue.
While acknowledging that the Bill's fate remains uncertain, with possibilities of modification or stagnation, Ramesh stressed that the very existence of the HIRE Act is a stark indicator of mounting challenges in the economic relationship between India and the US, which has seen turbulence over the past year.
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