For Indian corporations wanting abroad, world growth is now not nearly market alternative — it’s more and more about regulatory endurance. A brand new report by Avalara Inc. reveals that 70% of Indian companies consider cross-border commerce has turn out to be extra complicated than it was three years in the past, highlighting a decisive shift in how companies method worldwide progress.
The 2026 Cross-Border Complexity Report, based mostly on responses from senior decision-makers, captures mounting frustration with shifting laws, tariff volatility and uneven enforcement requirements throughout markets. A fair bigger 86% of respondents stated cross-border operations have turn out to be extra difficult in simply the previous 12 months, signalling that the compliance burden is accelerating somewhat than stabilising.
The impression is tangible. Almost 78% of Indian companies surveyed stated they’ve delayed, scaled again or reconsidered entry into new worldwide markets as a result of regulatory uncertainty. But growth ambitions stay alive: greater than half nonetheless plan to enter extra markets, albeit with extra rigorous compliance groundwork.
The findings counsel a recalibration somewhat than a retreat. Firms 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 are actually influencing strategic choices on the boardroom stage.
“Indian corporations stay dedicated to world growth, however the tempo of regulatory change means planning have to be each grounded and forward-looking,” stated Dulles Krishnan, Common Supervisor, India Operations at Avalara. He pointed to rising tariff volatility, stricter documentation necessities and the worldwide shift towards real-time tax reporting as key stress factors. “Firms want stronger techniques, dependable information flows and purpose-built know-how to remain compliant and function with out disruption,” he added.
The report identifies tariffs and duties as probably the most important operational hurdle, cited by 47.2% of respondents. Customs and border processes observe at 40.8%, whereas 37.6% flagged challenges linked to decoding native laws. These friction factors happen at essential phases of cross-border motion, the place even minor compliance lapses may end up in cargo delays, penalties or larger landed prices.
The monetary implications are notable. On common, Indian companies are spending 11.4% of their cross-border income on customs, taxes and regulatory administration. This underscores a structural shift: compliance is now 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 function in managing this complexity. About 89% of surveyed companies stated they’re utilizing digital techniques to scale back guide processes and enhance visibility throughout a number of jurisdictions. Companies report that automation is crucial in retaining tempo with frequent regulatory updates, notably in areas comparable 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 modifications as a key operational problem, whereas 46.4% pointed to frame disruptions and 40% to surprising fines or audits. These persistent uncertainties are prompting companies to put money into extra resilient compliance frameworks.
The report concludes that Indian corporations will not be stepping again from globalisation — they’re professionalising it. Enlargement continues, however with stronger regulatory intelligence, structured processes and compliance-led decision-making at its core.
