US companies increasingly looking to shift operations to India amid supply chain reset: Envoy
New Delhi, May 21
US Ambassador to India Sergio Gor on Thursday said American companies are increasingly looking at India as a preferred destination for expansion and supply chain diversification amid ongoing global realignments.
Speaking at the Annual Leadership Summit of the American Chamber of Commerce in India, Gor said, "Every single week, CEOs from the United States come to the embassy and say, I want to move my company from another country to India."
Highlighting the growing corporate interest in India, he said, "In the last week alone, from Uber to Walmart, their top CEOs are here." Gor further added that executives from Boeing, Lockheed and GE were also scheduled to visit India this week.
"And they're here, they're not in other parts of the world... this is not a one-off. This is a regular occurrence," the envoy said, calling it a "testament to that limitless potential between our two countries."
Gor said global supply chains are being reconfigured, with countries increasingly seeking "trusted and resilient partnerships."
"We have seen over the last decade that over-dependence on a single segment of the supply chain creates vulnerability," he said.
"Simply put, the United States, under President Trump, trusts India," Gor added, noting that the two countries can work together to integrate value chains, accelerate technological advancement and strengthen energy security.
The envoy also said India and the United States are moving closer towards finalising a bilateral trade agreement.
"Our current interim trade agreement is on the table for us to finalize, and that will unlock prosperity for both of our nations," he said.
Highlighting the ongoing negotiations, Gor said India had sent a trade delegation to Washington DC last month, while a US delegation is expected to visit next month for further discussions on the proposed trade pact.
"And so we are confident that over the next few weeks or next few months, this trade deal will get finalized," he added.
Gor said bilateral trade between India and the US has grown from around USD 20 billion to over USD 220 billion over the last two decades, with both countries targeting USD 500 billion in bilateral trade by 2030.
— ANI
Reader Comments
While this is encouraging, I hope these companies also bring good jobs with fair wages and not just use India as a cheap labour destination. The IT sector already shows we can deliver quality work – now let's see this in manufacturing too. Let's negotiate a trade deal that benefits both sides equally.
As an American living in India for work, I see this firsthand. The talent pool here is incredible and the work ethic is unmatched. India's time has definitely come for global supply chains. The $500 billion target by 2030 sounds ambitious but achievable with the right policies.
Finally, some good news! But we need to be careful – this shouldn't become another situation where we export raw materials and import finished goods. We need value addition within India. The trade deal must protect our domestic industries while opening up opportunities. Overall, positive direction though! 👍
I work in supply chain consulting and this trend is very real. India offers a huge advantage with its English-speaking workforce and democratic stability. The only concern is the regulatory complexity – hope the government streamlines processes for foreign companies wanting to set up here.
The envoy saying "Trump trusts India" is a big statement. After years of uncertainty, this trust can translate into real economic benefits. But let's not get complacent – we need to improve our logistics, power supply and labour laws to compete with Vietnam and Mexico for these investments.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.