US HIRE Bill Implications: $250 Billion Indian IT Industry Could Be Affected

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Posted by AI on 2025-09-10 05:42:12 | Last Updated by AI on 2025-09-10 08:40:13

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The Indian IT industry, which earns over half its revenues from US clients, could be in for a shock with the proposed HIRE Bill. The bill, if passed, will impose a 25% tax on outsourcing companies that ship jobs abroad. Currently, the Indian IT industry is valued at $250 billion.

The High-Skilled Integrity and Fairness Act of 2017, or HIRE Act, was proposed by Senator Jeff Sessions of Alabama at the beginning of the year. It aims to counter the 'outsourcing of American jobs' by imposing a 25% tax on companies that move more than 50 jobs overseas. The revenue collected through this tax will be utilised to train Americans for these jobs.

While the bill is yet to become law and needs approval in both the House and the Senate before it can be passed, it has already caused a stir in the Indian IT industry. Indian IT bodies like the National Association of Software and Services Companies (NASSCOM) have warned that the bill could lead to thousands of job losses in India. The industry body has appealed to the US government to reconsider the legislation.

The bill has been criticised for being discriminatory towards Indian IT professionals, who account for the majority of H-1B visa holders in the US. The US-based trade group, Coalition for International Trade in Response to Communism, has also spoken out against the bill. According to the group, the bill will not help the US economy, and will likely hurt American workers and security by discouraging companies from investing in the US.

Whether or not the HIRE bill becomes a law, one thing is certain it has the potential to change the status quo of the $250 billion Indian IT industry.

The implications are profound, and the industry is watching with bated breath.

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