'Not goods, but services at risk': Raghuram Rajan warns HIRE Act could hit India harder

Former RBI Governor Raghuram Rajan has warned that India should be more concerned about the proposed U.S. HIRE Act, which could impose tariffs on outsourced services, than the recent $100,000 H-1B visa fee hike. He said the new legislation under debate in the U.S. Congress poses a more significant threat to India's service exports and global talent pipeline. Advertisement

The economist said that while higher H-1B visa fees would cause short-term disruptions, the potential expansion of tariffs under the HIRE (Help In-sourcing and Repatriating Employment) Act could have a far more lasting impact.

"One of our biggest concerns is not so much the goods tariffs but if they try and find ways of imposing tariffs on services. This is a threat. There's the HIRE Act, which Congress is debating, wh