During his visit to the United States, Prime Minister Narendra Modi met with several American CEOs and extended an invitation to them to increase their investment in India. The discussions revolved around strengthening bilateral economic ties and exploring opportunities for collaboration.
Micron Technology’s Interest
Sanjay Mehrotra, CEO of Micron Technology, expressed the company’s enthusiasm for expanding its presence in India. Micron is a global leader in memory and storage solutions, serving various sectors such as data centers, smartphones, and PCs. The company sees India as a promising market for its products.
Applied Materials’ Perspective
Gary E Dickerson, President and CEO of Applied Materials, emphasized the potential for incredible growth in India. The company looks forward to working together with Prime Minister Modi and the Indian government to achieve mutual success. Applied Materials specializes in process technology and advanced packaging capabilities, making it a valuable contributor to India’s semiconductor ecosystem.
General Electric’s Greater Role
Prime Minister Modi invited General Electric (GE) to increase its involvement in India’s aviation and renewable energy sectors. GE has demonstrated a long-term commitment to manufacturing in India, and the prime minister appreciated their efforts. The discussions focused on fostering greater technology collaboration to promote manufacturing in India.
India’s Semiconductor Industry Development
India is actively promoting the development of its semiconductor industry and has introduced a production-linked incentive (PLI) scheme to support this initiative. With the aim of reducing dependence on imports, the country is positioning itself as an attractive destination for electronics and semiconductor manufacturing. Although the Indian semiconductor market is valued at $27.2 billion and projected to grow significantly, none of these chips are currently manufactured within India.
US Interest in Investing in India
Prime Minister Modi’s visit to the United States is expected to inspire American companies to explore investment opportunities in India. This interest stems from the desire to reduce reliance on China for manufacturing-related activities. The United States ranks as the third-largest source of foreign investment for India, with accumulated investments of over $60 billion from 2000 to 2023.
Recent Investment Announcements
Several US companies have recently announced investments in India, signaling their growing interest in the country. These announcements include:
- Tesla: Prime Minister Modi met with CEO Elon Musk to encourage a significant investment by the electric-car maker in India.
- Micron Technology: The Indian cabinet approved Micron’s $2.7 billion plan to establish a new semiconductor testing and packaging unit in the country.
- Boeing: The aircraft manufacturer plans to invest around $24 million in India to establish a logistics center for airplane parts, coinciding with an order for 220 jets from Air India.
- Amazon.com: Amazon Web Services announced its intention to invest $13 billion in India by 2030 to enhance its cloud infrastructure and create job opportunities.
- Apple: The tech giant aims to expand its manufacturing operations in India through collaborations with contract electronics makers Foxconn, Wistron Corp, and Pegatron Corp. Apple has also opened stores in Mumbai and Delhi.
- Foxconn: The Taiwanese contract manufacturer plans to invest $500 million in manufacturing plants in Telangana and nearly $968 million in Karnataka, creating over 70,000 jobs. Additionally, Foxconn intends to establish a factory in India for manufacturing AirPods.
- Cisco Systems: The networking equipment maker will commence manufacturing in India, targeting $1 billion in production and exports from the country to diversify its global supply chain.
- Walmart: The retail giant aims to annually export goods worth $10 billion from India by 2027, aligning with its CEO’s meeting with Prime Minister Modi.
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