India - USA: The US-India Strategic Partnership Forum (USISPF) has called for comprehensive tax reforms to support India’s ambition of becoming a $5 trillion economy. Ahead of the Union Budget 2025-26, the US-India Tax Forum, a key advocacy body within USISPF, submitted recommendations to the Ministry of Finance to enhance India's economic competitiveness. The suggestions focus on simplifying tax systems, attracting international investment, and boosting sectors like manufacturing, healthcare, and renewable energy.

Key proposals include simplifying the Tax Deduction at Source (TDS) system, aligning foreign and domestic tax rates for foreign banks, and offering a 10% tax on dividends for Foreign Portfolio Investors (FPIs). The Forum also advocates for tax breaks for Gujarat International Finance Tec-City (GIFT City) to promote its growth as a global financial hub.

In healthcare, the Forum recommends lowering tariffs on life-saving medicines and maintaining exemptions for certain drugs. For renewable energy, it urges incentives for electric vehicle manufacturers and clean energy adoption.

The recommendations also call for simplifying the customs tariff structure and modernizing tax policies for the digital economy, including easier tax processes for foreign companies. USISPF emphasizes that these reforms are essential for enhancing investor confidence and aligning with India’s goal of becoming a dominant global economic player.