India is one of the largest emerging markets by value and among the most expensive by valuation, driven by domestic consumption, private banks, IT services and a deep pool of local retail investors. Only a small group of Indian companies have U.S. listings, so most American investors reach the market through a handful of ADRs or funds.
Dividend taxes for U.S. investors
India withholds 20% on dividends to non-residents, plus a 4% health and education cess, for 20.8% on most individual holdings; a surcharge (10% above ₹50 lakh of income, 15% above ₹1 crore) can push it higher for very large payments. The U.S.–India treaty rate for portfolio dividends is 25% (15% only for companies owning at least 10%), so the domestic rate is lower and normally applies. Dividends on Indian ADRs can fall under a separate provision and rate, so check the issuer's dividend tax notice.
Getting to the treaty rate: Little to reclaim because the treaty rate is higher than the domestic rate. Claiming any treaty benefit requires a Tax Residency Certificate and India's prescribed forms filed with the company or custodian. Difficulty: Hard (if any relief is sought).
Qualified dividend status: Yes — treaty country; NYSE-listed ADRs also meet the readily-tradable test. See how foreign dividends qualify.
Estimate what a India dividend nets you with the Withholding Calculator.
Where and when it trades
Main exchange: National Stock Exchange of India (NSE) and BSE
Local hours: 9:15–15:30 IST (pre-open 9:00–9:15)
In U.S. Eastern Time: 11:45 p.m.–6:00 a.m. ET during U.S. daylight time; 10:45 p.m.–5:00 a.m. ET during U.S. standard time (overnight; India has no DST)
Because the home market is often closed while New York trades, news released overnight shows up in the ADR at the U.S. open. Read more about global market hours.
Well-known U.S.-traded listings
These are some of the most widely held India companies available on U.S. markets, listed as examples of how access works, not as recommendations.
| Company | Ticker | Venue |
|---|---|---|
| Infosys | INFY | NYSE |
| HDFC Bank | HDB | NYSE |
| ICICI Bank | IBN | NYSE |
| Wipro | WIT | NYSE |
| Dr. Reddy's Laboratories | RDY | NYSE |
Financial reporting
SEC registrants file Form 20-F (often with IFRS statements); Indian listed companies publish quarterly results under SEBI rules using Ind AS, India's IFRS-converged standards, with a March 31 fiscal year.. Our guide to reading foreign financial statements covers the differences that matter.
What American investors should weigh
- Foreign individuals generally cannot buy shares directly on Indian exchanges; ADRs and U.S.-listed funds are the practical routes.
- The rupee has tended to weaken against the dollar over long periods, which reduces dollar returns.
- Dividend withholding of about 20.8% is higher than most developed markets, and the treaty doesn't lower it for portfolio investors.
- Indian IT-services ADRs earn much of their revenue in dollars, so they behave differently from domestically focused banks and consumer companies.
- Valuations are often well above other emerging markets, which raises the stakes on earnings growth.
Rates change
Figures on this page were checked against the sources below on October 24, 2026. Treaty rates and domestic rules do change; confirm the current rate with your broker or the official source before relying on it.
Sources
Educational content only, not investment, tax or legal advice. The Stateside Report does not recommend buying or selling any security. Tax rules depend on your situation; confirm with a qualified tax professional. Full disclosures.