India’s IT services industry, the country’s largest private employer, may soon face an unwelcome tax hit from its biggest market. Over 60% of the sector’s revenue comes from the US, but a new bill, the Halting International Relocation of Employment (HIRE) Act, seeks to impose a steep 25% levy on payments to foreign firms providing services to American companies. Proposed by Senator Bernie Moreno, the tax would fund domestic workforce programmes, but risks raising costs for US businesses heavily dependent on offshore tech talent. For Indian IT majors, already grappling with muted demand, this could squeeze margins and force price renegotiations. Experts doubt the bill will pass in its current form, since a 25% tax would hurt US corporations as much as Indian outsourcers. But even a watered-down version could change outsourcing economics. Read on as Jas Bardia explains how the piece of legislation in the US could affect the $283-billion IT services industry in India. Market Watch🚀 Markets rally on IT boost! Indian stocks ended higher on Tuesday, lifted by strong IT sector gains, upbeat global cues, and renewed buying in large caps.
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गुरुवार, 11 सितंबर 2025
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