Chartered Accountants◆Practising since 2016

USA to India · Trade and sectors

Trade agreements and sector rules for US investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

There is no comprehensive India–US trade agreement in force. Foreign investment from the USA is on the automatic route in most sectors. US investors are most active in technology and capability centres, healthcare and life sciences, financial services.

What is specific to US companies

No comprehensive trade agreement is in force between India and the US. US investors are active in technology, life sciences, financial services and electronics manufacturing, where production-linked incentive schemes can support local production.

Sectors

  • Technology and capability centres
  • Healthcare and life sciences
  • Financial services
  • Manufacturing under production-linked incentives

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

Our services

How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and US rules change often; confirm the current position before acting. US law points should be confirmed with a US adviser.

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