Although the negotiation process has slowed due the Covid-19
pandemic, demand for bilateral advance pricing agreements (APAs)
between India and the US continues to grow due to the high
potential for adjustments and the risk of double taxation. US
multinationals with a significant presence in India should
carefully consider the benefits of obtaining a bilateral APA.
The US and India business relationship has developed over the
past 30 years with the investment by US multinationals into India
significantly growing too. During the period April 1, 2019, to
March 31, 2020, it was estimated by the Indian government that the
US direct investment was approximately USD 43 billion, which was
around 8% of total foreign direct investment.
