70% of Indian firms say cross border trade more complex; global expansion slows: Report – BusinessToday

For Indian corporations wanting abroad, global expansion is not nearly market alternative — it’s more and more about regulatory endurance. A brand new report by Avalara Inc. reveals that 70% of Indian firms imagine cross-border trade has develop into more advanced than it was three years in the past, highlighting a decisive shift in how companies strategy worldwide development.

The 2026 Cross-Border Complexity Report, based mostly on responses from senior choice-makers, captures mounting frustration with shifting laws, tariff volatility and uneven enforcement requirements throughout markets. A good bigger 86% of respondents stated cross-border operations have develop into more sophisticated in simply the previous yr, signalling that the compliance burden is accelerating fairly than stabilising.

The influence is tangible. Practically 78% of Indian companies surveyed stated they’ve delayed, scaled again or reconsidered entry into new worldwide markets because of regulatory uncertainty. But expansion ambitions stay alive: more than half nonetheless plan to enter further markets, albeit with more rigorous compliance groundwork.

The findings recommend a recalibration fairly than a retreat. Corporations are more and more constructing compliance assessments into early-stage planning, nicely earlier than contracts are signed or workplaces established overseas. Tariffs, customs documentation necessities and the interpretation of native tax guidelines at the moment are influencing strategic choices on the boardroom degree.

“Indian corporations stay dedicated to global expansion, however the tempo of regulatory change means planning have to be each grounded and ahead-wanting,” stated Dulles Krishnan, Basic Supervisor, India Operations at Avalara. He pointed to rising tariff volatility, stricter documentation necessities and the global shift towards actual-time tax reporting as key stress factors. “Corporations want stronger methods, dependable knowledge flows and goal-constructed know-how to remain compliant and function with out disruption,” he added.

The report identifies tariffs and duties as probably the most vital operational hurdle, cited by 47.2% of respondents. Customs and border processes comply with at 40.8%, whereas 37.6% flagged challenges linked to deciphering native laws. These friction factors happen at vital levels of cross-border motion, the place even minor compliance lapses may end up in cargo delays, penalties or increased landed prices.

The monetary implications are notable. On common, Indian firms are spending 11.4% of their cross-border income on customs, taxes and regulatory administration. This underscores a structural shift: compliance is not handled as an administrative operate however as a strategic price centre requiring coordinated oversight throughout finance, logistics and authorized groups.

Know-how is enjoying a rising position in managing this complexity. About 89% of surveyed firms stated they’re utilizing digital methods to cut back handbook processes and enhance visibility throughout a number of jurisdictions. Companies report that automation is crucial in retaining tempo with frequent regulatory updates, significantly in areas equivalent to South Asia, Europe and North America, the place compliance requirements have tightened.

Nonetheless, complexity doesn’t ease after market entry. Greater than half of respondents cited ongoing regulatory adjustments as a key operational problem, whereas 46.4% pointed to border disruptions and 40% to surprising fines or audits. These persistent uncertainties are prompting firms to put money into more resilient compliance frameworks.

The report concludes that Indian corporations aren’t stepping again from globalisation — they’re professionalising it. Expansion continues, however with stronger regulatory intelligence, structured processes and compliance-led choice-making at its core.