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Proposed US outsourcing tax may hit India's IT sector
Financial Express Ahmedabad
|September 09, 2025
IN A TIGHT SPOT
A NEW LEGISLATIVE proposal in the US, which seeks to impose an additional tax burden on companies that outsource jobs overseas, has added a fresh layer of uncertainty for India's information technology (IT) services sector.
The move could weaken two of the sector's biggest strengths—healthy order inflows and pricing stability.
The Bill, tabled by a Republican senator, is yet to become a law, but even in its current form, it raises the prospect that US enterprises—the single-largest customer base for Indian IT majors—may revisit their technology budgets. Any such reconsideration could slow the momentum of contract closures.
This story is from the September 09, 2025 edition of Financial Express Ahmedabad.
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