India's IT sector nervous as US proposes outsourcing tax

The US HIRE Act proposes a 25% tax on American companies outsourcing jobs abroad, targeting India’s IT sector, which relies heavily on the US market for over 60% of its revenue. This tax would increase costs for US firms and reduce outsourcing, causing uncertainty and delays in contracts for Indian IT companies. Although likely to face pushback and possible dilution, the bill threatens to disrupt India’s $283 billion IT industry based on outsourcing.
*This news was published by the Times of India on September 12, 2025.*

 

 

 

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