Major US Companies Declare to Shift Operations to India

There is a major, ongoing trend of US companies shifting and expanding operations to India, driven by a combination of factors including geopolitical tensions, the need for supply chain diversification (“China Plus One” strategy), and Indian government incentives.

The shift is particularly significant in the Electronics/Tech Manufacturing and High-Value Services/R&D (Global Capability Centers – GCCs) sectors.

Here are the full details on the major companies and the nature of the shift:

1. Electronics and Manufacturing Shift (Supply Chain Diversification)

The most visible shift is in electronics manufacturing, largely driven by the goal of moving production away from China to mitigate risks from trade tariffs and geopolitical instability.

Major Company: Apple

  • Nature of Shift: Apple and its key contract manufacturers (Foxconn, Pegatron, Wistron/Tata Electronics) are aggressively expanding iPhone assembly in India.
  • Key Details:
    • Scale: Reports indicate that Apple aims to have a significant percentage (some estimates suggest 25% or more) of its global iPhone production in India over the next few years. In the 2024–2025 fiscal year, one in seven (around 14%) of the world’s iPhones were made in India.
    • Focus on US Market: Apple has reportedly started assembling a significant share of iPhones specifically for the US market in India, a major symbolic and operational pivot from its long-standing reliance on China.
    • Ecosystem Development: The shift is creating a large local ecosystem. Nearly 45 companies, including both multinational and local Indian firms (like Tata Electronics, Aequs, Jabil, and Motherson), are now part of Apple’s supply chain in India, supplying components and services.
    • Incentives: This move is heavily supported by the Indian government’s Production Linked Incentive (PLI) scheme, which offers financial rewards to companies that manufacture goods locally.

Other Key Companies and Sectors

  • Google: Has also begun manufacturing its Pixel smartphones in India, partnering with local players like Dixon Technologies, following the supply chain model pioneered by Apple.
  • Automotive/Tech: Companies like General Electric (GE) and Cisco Systems have long-established manufacturing and R&D facilities in India, with GE using its Pune plant as a global supply source for diverse businesses.
  • Clothing/Textiles: Due to rising costs and geopolitical tensions with China, eco-conscious US apparel brands are increasingly moving their sourcing and manufacturing to India, which specializes in high-quality cotton and natural fibers.

2. Shift of High-Value Work (Global Capability Centers – GCCs)

A second, less visible but equally critical shift is the acceleration of high-end corporate functions moving to India, primarily due to rising costs and visa curbs in the US.

Major Trend: Global Capability Centers (GCCs)

  • Nature of Shift: US companies are transforming their Indian back-offices into Global Capability Centers (GCCs)—hubs for high-value work like Artificial Intelligence (AI), Cybersecurity, Product Development, and Financial Innovation.
  • Driving Force: Recent increases in H-1B visa application fees (rising dramatically to $100,000 in one analysis) are forcing US firms to accelerate the relocation of critical, high-skilled talent and work to their Indian centers.
  • Key Companies: Major tech and financial giants with sprawling Indian operations that are likely to accelerate this shift include:
    • Tech: Amazon, Microsoft, Google, Apple (in R&D).
    • Finance/Retail: JPMorgan Chase, Walmart, FedEx, Target, Lowe’s, Bristol-Myers Squibb.
  • Scale: India currently hosts over 1,700 GCCs and this number is expected to exceed 2,200 by 2030, with the market size nearing $100 billion.

3. Financial Investment and Digital Expansion

US companies remain the single largest source of foreign investment in India, focusing heavily on the rapidly growing digital and consumer markets.

  • Microsoft: Pledged a $3 billion investment over the next two years, primarily focused on expanding its Cloud and AI infrastructure in India by building new data centers to support the country’s massive digital push.
  • Amazon & Walmart (Flipkart/PhonePe): Continue to invest billions in the e-commerce, cloud services, logistics, and fintech sectors to capture India’s rapidly expanding consumer market.

In summary, the narrative of US companies shifting operations to India is not about a single announcement but a broad, accelerating macro-trend driven by the “China Plus One” diversification strategy and economic pressures like rising visa costs. This shift encompasses both physical manufacturing (led by Apple and its suppliers) and the relocation of high-skilled, white-collar corporate functions (the GCC acceleration).

Chandan Singh

this is Chandan Singh from India. research technical analyst in financial market and helping investor or traders to generate knowleage with profit from financial market with having 17 years of experience!