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US Tech Firms Accelerate India Investments
American technology giants are significantly expanding operations in India, driven by supply chain diversification and strategic market positioning. Recent data shows US investment in India surged 38% year-over-year, with major players like Apple, Google, and Microsoft leading the charge.
Strategic Manufacturing Push
Apple now manufactures 14% of iPhones in India through Foxconn facilities, up from 7% just two years ago. Google recently opened its second Pixel smartphone factory near Chennai, while Microsoft has committed $2.1 billion to hyperscale data centers in Hyderabad and Mumbai. This manufacturing shift comes as companies implement "China+1" strategies following pandemic-era disruptions.
Policy Tailwinds
The acceleration follows the landmark 2025 US-India COMPACT agreement that established streamlined FDI approvals and tax incentives. "The framework reduces approval times from 90 to 45 days for critical tech projects," explains trade analyst Rajiv Mehta. Recent reforms like the amended Electronics Manufacturing Scheme provide 25% capital subsidies for new facilities.
Talent and Innovation Hubs
Beyond manufacturing, companies are establishing major R&D centers. Amazon's new Hyderabad campus will house 15,000 engineers working on AWS and AI projects. Intel's Bangalore facility focuses on chip design for next-gen processors. Over 30 US tech firms participated in May's SelectUSA Investment Summit, with Indian startups Terraeagle Technologies and Nayan India securing top spots in pitching competitions.
Market Opportunity
India's tech market is projected to reach $512 billion by 2027, with 900 million internet users. "You can't ignore the dual advantage of skilled talent and massive consumer base," says Microsoft India President Puneet Chandok. Recent expansions include:
- Adobe's new creative cloud development hub in Noida
- Tesla's engineering center in Pune focused on battery tech
- NVIDIA's AI research partnership with IIT Bombay
