Lok Sabha Question No. 4184 (UNSTARRED), answered on 2025-08-19
Subject: Impact of US Policies
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri K Radhakrishnan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 4184 ANSWERED ON 19/08/2025

## IMPACT OF US POLICIES

## 4184. SHRI K RADHAKRISHNAN

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether  the  Government  is  aware  of  the  impact  of  recent  changes  in  U.S.  tax policies, including the global minimum tax and corporate tax regulations, on Indian companies operating in or exporting to the United States;
- (b) whether  the  Government  has  conducted  any  study  to  assess  how  these  tax measures have affected India's  trade  balance,  FDI  inflow  and  overall  economic growth;
- (c) whether the depreciation of the Indian rupee against the U.S. dollar in recent months has further compounded the challenges for Indian exporters and companies with exposure to U.S. markets;
- (d) whether  the  Government  has  taken  up  this  issue  with  the  U.S.  authorities  or international  bodies  and  the  steps  being  taken  to  protect  Indian  economic  and commercial interests;
- (e) if so, the details thereof; and
- (f) the measures being taken by the Government to support affected sectors, maintain export  competitiveness  and  stabilize  the  rupee  in  view  of  the  global  taxation developments?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) India has entered into a Double Taxation Avoidance Agreement with the United States that is applied on the corporate taxation of Indian companies in United States. The benefits available in this Agreement remain unchanged irrespective of the domestic laws of United States.  United States has not implemented the global minimum tax rules so far, and has stated that the commitment made by prior administration on it shall have no effect in United States unless they are adopted in its domestic laws. This is unlikely to affect taxation of Indian companies in United States. U.S. Corporate tax changes generally apply to entities with U.S. tax liability and are not expected to directly affect exporters that sell from India.

(b) Indicators such as trade balance, FDI Inflow and economic growth are a function of several  different  variables.  Trade  balance  depends  on  various  factors  including  the demand  and  supply  of  tradeable  commodities  in  the  international  market.  Impact  of

changes in tax policy in a specific foreign country on the aforementioned indicators, if any, cannot be isolated.

(c) to (f) The overall impact of depreciation of Indian rupee against the US dollar on the economy depends on multitude of factors and cannot be isolated.

Government is engaged with all relevant stakeholders including industry to protect country's economic and commercial interests and to mitigate impact on trade through all appropriate steps including export promotion and trade diversification.

RBI formulates, implements and monitors the monetary policy which also facilitates external  trade,  and  payment,  and  promote  orderly  development  and  maintenance  of foreign exchange market in India. RBI has also undertaken various measures to diversify and expand the sources of forex funding to mitigate volatility in the exchange rate.

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