The Halting International Relocation of Employment (HIRE) Act, which was recently filed in the U.S. Senate, may have significant effects on India's services sector if it were to become law, the Congress warned on Tuesday, November 4, 2025.
In a post on social networking platform X, Congress general secretary (communications) Jairam Ramesh stated that if it came to pass, it would "light a fire in the Indian economy."
Senator Bernie Moreno of Ohio submitted the bill on October 6 and stated that it aims to tax every American individual or business that makes a "outsourcing payment" by 25%.
He pointed out that the phrase had been interpreted as any payment made to a foreign individual whose labour helps American customers.

"The Bill has a direct and deep impact on India's IT services, BPO, consulting, and Global Capability Centres," Mr. Ramesh stated. "Other countries like Ireland, Israel, and the Philippines may also be affected, but the maximum effect will be on India's exports of services—marked success story of the past quarter century."
The U.S. Senate Committee on Finance has been tasked with reviewing the bill.
Although its future is still unknown, Mr. Ramesh claimed it represented a growing American belief that "white collar jobs should not be lost to India, while blue collar jobs were lost in China."
The Congress leader stated, "No one anticipated a year ago that the India-US economic relationship would take so many knocks – of which the HIRE Bill is another reflection."

Mr. Ramesh cautioned, providing a link to the Bill's provisions, "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."