A new legislative proposal in the US Senate, known as the HIRE Act, seeks to impose a 25% tax on outsourcing payments made by American entities to foreign workers. The bill, spearheaded by Senator Bernie Moreno, aims to bolster domestic employment by discouraging the outsourcing of jobs that benefit US consumers.

Critically, the proposed legislation has raised concerns in India, a country that has become a significant player in the global IT services sector. The potential economic repercussions for India's thriving IT industry and export services, if the bill is enacted, are substantial. The Congress has expressed that the legislation could ignite challenges in the Indian economy.

The bill has been referred to the Senate Committee on Finance, and its progress is being closely monitored.

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