PM Modi’s Visit to US Could Encourage More US Companies to Invest in India
To lessen their reliance on China for manufacturing-related activities, more American companies may consider investing in the South Asian nation as a result of Indian Prime Minister Narendra Modi’s visit to the United States.
With over $60 billion invested between 2000 and 2023, the United States is India’s third-largest source of foreign investment, according to official data.
Elon Musk claimed that Modi was pressuring the manufacturer of electric vehicles to make a “significant investment” in the nation and that an announcement was soon to come.
According to a senior government source, India’s cabinet approved the chipmaker’s $2.7 billion plan for a new semiconductor testing and packaging unit before Modi’s state visit to the US.
According to a statement released by the Indian government on Thursday, Modi met with Micron CEO Sanjay Mehrotra in Washington on Wednesday and invited the company to expand semiconductor production in India.
Boeing To establish a logistics hub for airplane parts in India, the aircraft manufacturer plans to invest about $24 million there. The announcement came before the company received a 220-jet order from Air India.
According to Amazon Web Services, the country will receive $13 billion in investment by 2030 to help build its cloud infrastructure and support thousands of jobs.
In April, the American tech giant opened locations in Delhi and Mumbai. It has been attempting to expand its manufacturing base in India. It has begun producing several goods there through the contract electronics manufacturers Foxconn, Wistron Corp., and Pegatron Corp.
Apple CEO Tim Cook stated during a visit to India in April that the company was “committed to growing and investing across the country.”
The Taiwanese contract manufacturer intends to invest $500 million in Telangana, a state in southern India, and nearly $968 million in Karnataka, a neighboring state, to build manufacturing facilities. According to Indian officials, the investments are anticipated to generate more than 70,000 new jobs.
The AirPods factory will be constructed in India by the Apple supplier to produce the company’s wireless earbuds.
The American networking equipment manufacturer will start producing in India as part of an effort to diversify its global supply chain. Over the next few years, it has set a goal of $1 billion in production and exports from India.
The CEO of the retail behemoth met Modi during his visit to India last month and reaffirmed that the company intended to export goods worth $10 billion annually from India by 2027.
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In a meeting with CEO Gary Dickerson on Wednesday in Washington, Modi extended an invitation to Applied Materials to support the development of “process technology and advanced packaging capabilities” and the strengthening of the “semiconductor ecosystem” in India.
In a meeting with CEO Lawrence Culp on Wednesday, Modi requested that GE play a “greater role” in India’s aviation and renewable energy industries, according to the Indian government.