Jairam Ramesh Warns HIRE Act Could Severely Impact India’s IT Industry
Congress leader cautions that the proposed US legislation may disrupt India’s IT, BPO, and consulting sectors, threatening a key pillar of bilateral economic ties.
New Delhi, Nov 4: Congress leader Jairam Ramesh has raised concerns over the Halting International Relocation of Employment (HIRE) Act introduced by US Senator Bernie Moreno, warning that the proposed legislation could significantly harm India’s IT, BPO, consulting, and Global Capability Centre (GCC) industries.
In a post on X, 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 affected, but the maximum impact will be on India’s export of services one of the biggest success stories of the past 25 years.”
The HIRE Act proposes a 25 per cent tax on US companies outsourcing jobs to foreign entities, aiming to discourage the offshoring of white-collar employment. Ramesh argued that the move reflects a growing sentiment in the US that white-collar jobs should not be “lost to India,” similar to earlier resistance against blue-collar jobs shifting to China.
“If the HIRE Act becomes reality, it could ignite serious challenges for the Indian economy, which may have to adapt to a new normal in its relationship with the US,” Ramesh warned, adding that the legislation could reshape India’s service export landscape.
While the Bill’s passage remains uncertain and could undergo changes, Ramesh stressed that it highlights the evolving dynamics of India-US economic relations, which have faced multiple headwinds in recent months.
