Trump’s Doubts vs. Tech Giants’ Trust in India

Former U.S. President Donald Trump has repeatedly criticized India as a “tariff nation,” expressing frustration with its trade policies since his time in office. He has accused India of imposing high duties and warned U.S. firms against shifting jobs abroad. Recently, amid election season, Trump again lashed out, claiming that “American tech companies are investing in India and exporting jobs.” Analysts suggest that his tariff war rhetoric may also serve as a distraction from issues like Israel’s actions in Gaza.

Yet, behind the politics lies a very different reality: American tech giants are betting big on India.

Amazon has invested $6.5 billion.

Google announced $10 billion under its Digitization Fund.

Microsoft set up its fourth data center in Hyderabad, investing over $2 billion in AI and cloud projects.

Apple has made India a key hub for iPhone production—7% of its global output in 2024, with over $5 billion invested.

Meta (Facebook) invested $100 million with Reliance Jio.

Lam Research announced $1 billion in the semiconductor sector.

Altogether, U.S. tech companies have invested over $14 billion (Rs 1.1 lakh crore) in India in just the last 2–3 years.

These numbers are not random—they reflect India’s rising role in global growth. Between 2020–24, India’s share of global FDI rose to 3.1%, up from just 2% in 2010–14, marking a 50% jump in a decade. India has also captured a large share of Asia’s greenfield investments.

Why India Attracts U.S. Tech

A massive consumer base: 1.4 billion people, including over 800 million internet users.

Affordable, world-class talent in software, AI, and data science.

Government initiatives like Digital India, Make in India, and PLI schemes.

Strong growth prospects: IMF projects India’s GDP growth at 6.5% in 2025, compared to just 2.1% for the U.S.

This contrast highlights a key truth: while Trump may complain about jobs moving to India, companies see India as the future market.