Team Blitz India
THE ironclad relationship that Indian Prime Minister Narendra Modi has developed with CEOs of the largest US tech companies is giving his nation the foreign support that India has craved for more than a decade.
The promise of further economic growth in India as China’s economy slows has led many American CEOs to support Modi’s policies.
Tensions between Washington and Beijing have also pushed U.S. conglomerates to diversify their manufacturing bases to countries, including India, to avoid disruptions from any potential conflict.
“Shifting supply chains away from rivals makes India a very important linchpin,” Manjari Chatterjee Miller, senior fellow for India, Pakistan, and South Asia at the Council on Foreign Relations, said.
The support from major U.S. companies also helps to shield PM Modi from criticism of India’s continued purchase of Russian and Iranian oil, as most major economies sanction the two nations.
Ahead of the election, Apple’s expansion into Inda, in particular, has given PM Modi political clout and created more investing interest among US companies, experts said.
“The story of Apple, such a marquee name, has worked in Modi’s favor – not only has it helped the economy, but it has also given him political swagger,” said Pravin Krishna, Chung Ju Yung distinguished professor of international economics and business at Johns Hopkins University.
PM Modi’s rapport with corporate America has grown exponentially in the last 18 months as U.S. tensions with China push the West to look to India for opportunity.
For now, the money is pouring in. Foreign direct investment into India has steadily risen from $36 billion in 2014 to over $70 billion in 2023, according to Visual Capitalist. During the same period, investment in China has fallen.
ETF data shows investors continuing to allocate capital into India, according to Roundhill Investments’ Dave Mazza.
So far this year, inflows to India sit at $2.5 billion, right behind Japan’s $3.5 billion. At the same time, China has seen outflows of nearly $1 billion. “India remains one of the most attractive growth and investment stories for this decade,” says Jitania Kandhari, Managing Director at Morgan Stanley Investment Management.
