Congress warns the U.S.’s HIRE Bill could ‘light a fire’ in the Indian economy

The Congress on Tuesday (November 4, 2025) cautioned that the Halting International Relocation of Employment (HIRE) Act, recently introduced in the U.S. Senate, could have far-reaching consequences for India’s services sector if the proposal became law.

It would “light a fire in the Indian economy” if it became a reality, Congress general secretary (communications) Jairam Ramesh said in a post on social media platform X.

The Bill, which was introduced on October 6 by Ohio Senator Bernie Moreno, seeks to impose a 25% tax on any American person or company making an “outsourcing payment”, he said. 

The term, he noted, had been defined as any money paid to a foreign person whose work benefits consumers in the United States.

“The Bill has a direct and deep impact on India’s IT services, BPO, consulting and Global Capability Centres,” Mr. Ramesh said, adding, “Other countries such as Ireland, Israel and the Philippines may also be affected, but the maximum effect will be on India’s exports of services — a marked success story of the past quarter century.”

The Bill has been now referred to the U.S. Senate Committee on Finance. 

While its fate remains uncertain, Mr. Ramesh said it reflected an emerging sentiment in the U.S. that “while blue collar jobs were lost to China, white collar jobs should not be lost to India”.

“Nobody expected a year ago that the India-U.S. economic relationship would take so many knocks — of which the HIRE Bill is another reflection,” the Congress leader said.

“If ever HIRE becomes a reality, it will light a fire in the Indian economy, which may have to face a new normal in its relations with the U.S.,” Mr. Ramesh warned, sharing a link to the Bill’s provisions.