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US Bill Threatens Indian IT Industry with 25% Outsourcing Tax

  • Anjali 
  • Tech News
US Bill Threatens Indian IT Industry with 25% Outsourcing TaxSaralnama

A new US bill called the HIRE Act aims to discourage outsourcing jobs overseas. It proposes a 25% tax on outsourcing payments and bans tax deductions for outsourcing expenses. The bill could impact India's ₹20.7 lakh crore IT services industry, which relies heavily on US clients. Introduced by Senator Bernie Moreno, it seeks to encourage local hiring in America. Major Indian IT firms like TCS, Infosys, and Wipro get 50-65% of their revenue from North American clients. The bill faces hurdles as US companies may lobby against it, citing skill shortages at home. To adapt, Indian firms can diversify their client base beyond the US market. (Updated 9 Sep 2025, 18:06 IST; source: link)

Key Points

  • A new US bill called the HIRE Act aims to discourage outsourcing jobs overseas
  • It proposes a 25% tax on outsourcing payments and bans tax deductions for outsourcing expenses
  • The bill could impact India's ₹20.7 lakh crore IT services industry, which relies heavily on US clients