Indian firms may soon scale back investments in the United States as new tariffs and tax reforms under Donald Trump’s ‘One Big Beautiful Bill’ reshape the global business landscape. According to EY India, these policy shifts are forcing Indian companies to reassess overseas strategies and explore more stable destinations across Europe, the Middle East, Africa, and Southeast Asia.
EY’s latest report, India Abroad: Navigating the Global Landscape for Overseas Investment, highlights that India’s outbound investment reached $41.6 billion in 2024–25, a 67.7% jump from the previous year. The U.S. accounted for 11.5% of these flows, but analysts warn this may now decline as Indian enterprises weigh rising costs, tariffs, and policy unpredictability.
“The combination of targeted import tariffs and sweeping tax changes has added layers of complexity for companies operating across borders,” the report notes. For Indian businesses, these moves are more than policy tweaks , they represent signals for a decisive strategic pivot in outward investments.
The report predicts an accelerated shift toward geographies offering tariff stability, cost advantages, and predictable regulatory environments. This realignment also mirrors a broader global restructuring of value chains, renewed emphasis on free trade agreements, and companies’ preference for jurisdictions promising resilience amid rising trade and geopolitical uncertainties.
As the U.S. undergoes major economic recalibrations under Trump’s agenda, India’s corporate sector may well be at the forefront of a global reordering of investments charting new pathways for growth outside its traditional American focus.
