Trumps tariff and tax modifications will encourage Indian corporations to decide on different areas to put money into over the U.S.: EY India

The focused import tariffs by the U.S. and the current tax coverage modifications enacted via that nation’s ‘One Big Beautiful Bill’ will imply Indian corporations investing overseas would want to think about a “strategic pivot” and discover different geographies, in keeping with EY India. 

This comes at a time when India’s outbound funding, together with to the U.S., has been rising strongly.

According to a report by EY India titled ‘India overseas: Navigating the worldwide panorama for abroad funding’, India’s abroad funding had grown to $41.6 billion in 2024-25, up 67.7% over its degree in 2023-24, which itself was 8.8% greater than the $22.8 billion seen in 2022-23.

Of this, Indian investments within the U.S. accounted for 11.5% of India’s whole outward investments in 2024-25.

“The announcement of focused import tariffs and the wide-ranging tax modifications proposed via the ‘One Big Beautiful Bill’ have added contemporary layers of complexity for corporations working throughout borders,” the EY report stated. “For Indian companies, these modifications are extra than simply headline information — they’re strategic alerts that necessitate a decisive pivot in outbound direct funding methods.”

EY India added that it expects Indian enterprises to diversify their investments and speed up their growth into Europe, the Middle East, Southeast Asia and Africa. 

“This displays a deeper strategic realignment, i.e., reconfiguring world worth chains, advancing free commerce settlement (FTA) negotiations, and prioritising jurisdictions that supply tariff and price benefit together with stability in an unsure commerce surroundings,” it stated.