The focused import tariffs by the U.S. and the current tax coverage changes enacted via that nation’s ‘One Big Beautiful Bill’ will imply Indian corporations investing overseas would wish to take into account a “strategic pivot” and discover other geographies, in accordance to 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 abroad: Navigating the global landscape for overseas investment’, 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% increased than the $22.8 billion seen in 2022-23.
Of this, Indian investments in the U.S. accounted for 11.5% of India’s whole outward investments in 2024-25.
“The announcement of targeted import tariffs and the wide-ranging tax changes proposed through the ‘One Big Beautiful Bill’ have added fresh layers of complexity for companies operating across borders,” the EY report mentioned. “For Indian businesses, these changes are more than just headline news — they are strategic signals that necessitate a decisive pivot in outbound direct investment strategies.”
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 reflects a deeper strategic realignment, i.e., reconfiguring global value chains, advancing free trade agreement (FTA) negotiations, and prioritising jurisdictions that offer tariff and cost advantage along with stability in an uncertain trade environment,” it mentioned.
