US Companies in India — 2026-09-23

Top developments

Amazon, Google, Microsoft lead $80.5B Big Tech push into India's AI boom

Amazon, Google, Microsoft, Meta and Nvidia are accelerating investments across India spanning AI, cloud, data centers and computing infrastructure, with combined commitments of USD 80.5 billion. The scale of this spending positions India as a core global AI and cloud base for these firms, not just a sales market. For American companies building in India, the message is that hyperscale infrastructure investment is now the dominant mode of US engagement with the country.

India-US trade deal unlikely until competitor countries probed, tariffed

A US-India trade deal is unlikely until the United States completes investigations into competitor countries and imposes tariffs, according to reporting on September 23. The delay extends uncertainty for American firms importing into and manufacturing from India, many of which have been waiting on tariff clarity before committing capacity. This keeps tariff-related supply-chain risk — a key driver of US companies shifting production to India — unresolved.

Semicon India 2026: suppliers commit across the chip value chain — but no fabs

At Semicon India 2026, multinationals — including US equipment and materials firms — committed to almost every layer of India's semiconductor value chain except the one India most wants: no new fab was announced. Prime Minister Modi said the second phase of India's semiconductor mission is funded at USD 13.5 billion, up from roughly USD 8 billion in the first phase. The government is now inviting equipment, materials and chemicals suppliers to underwrite commercial production with their own capital.

India-U.S. trade deal unlikely until competitor countries probed; India joins Partnership for Multilateralism

India on September 21 joined the Partnership for Multilateralism, becoming an additional co-sponsor alongside Australia and Barbados of the "non-superpower" grouping launched by the EU, Brazil, Canada and Kenya. The diplomatic recalibration coincides with stalled bilateral trade talks with Washington. For US companies, this signals a broadening of India's economic diplomacy beyond the US bloc.

Indian M&A volumes fall 20%, outbound deals jump 76%

India's M&A deal volumes fell 20% in 2026 but bigger, high-conviction transactions gained ground, per a Boston Consulting Group report. Outbound deal value by Indian companies jumped 76% to $8.8 billion in the first seven months of 2026, while overall domestic volumes declined. For US firms eyeing Indian assets, the market is smaller in count but concentrated in large, global deals.

Deals, expansion & investment

• Amazon, Google, Microsoft, Meta and Nvidia — combined USD 80.5 billion in India investments across AI, cloud and data centers
• India's semiconductor mission Phase 2 funded at USD 13.5 billion; multinational suppliers committing equipment, materials and R&D (though no new fabs)
• Indian outbound M&A value up 76% to $8.8 billion in first seven months of 2026, as domestic deal volumes fell 20%

Regulation & market context

• India has proposed changes to its IT law to make government advisories and clarifications legally binding on internet platforms such as Meta, Google and X
• TRAI has introduced strengthened regulations to curb Unsolicited Commercial Communications (UCC), tightening the compliance environment for telecom-adjacent digital advertising
• The stalled US-India trade deal remains the biggest overhang: negotiations are unlikely to conclude until the US probes and tariffs competitor countries
• AI-driven growth and "America-first" policies are pulling global capital back toward the US, challenging India's appeal as the fastest-growing economy

On the radar

• US Fed rate environment: rising US rates, heavy AI spending and high oil prices are stirring concern in India about capital flows and the rupee
• Semiconductor supplier follow-through: watch whether equipment and materials firms convert Semicon India pledges into formal investment filings
• ETS: the proposed IT-law amendments making advisories binding on Meta, Google and X remain pending formal notification
• Belding India's North America expansion for modular data-center solutions — a rare Indian-to-US infrastructure play worth tracking

By the numbers

• USD 80.5 billion — combined Big Tech (Amazon, Google, Microsoft, Meta, Nvidia) investment commitments in India
• USD 13.5 billion — funding for India's semiconductor mission Phase 2, up from ~USD 8 billion in Phase 1
• 76% — jump in Indian outbound M&A deal value to $8.8 billion in H1 2026
• 20% — decline in India's domestic M&A deal volumes in 2026