Notwithstanding concerns over falling trade between the two economies, top officials said that India’s growing demographics, rising disposable income levels along with its digital progress offer "unparalleled opportunities" for US companies.

As per United Nations projections, India’s median age, which is 27.9, will rise to 34.6 years by 2040 while for China it will rise to 48 years. Last year China’s median age was 38.5.

“With India’s rising role in the geopolitical arena as well as an economic super-power, PM Modi’s visit to the US is significant for the country,” Gopal Krishna Agarwal, BJP’s spokesperson on economic affairs told The Secretariat, adding that significant investment commitments which were in the works are expected to be tied up.

Last year, Apple Inc’s top boss Tim Cook, who visited India, said that India is a focus market for the company. Besides Apple, Google, Microsoft, ExxonMobil, Amazon, Pepsico and GE are among top investors in the country.

Cook had described India as an “incredibly exciting market”. In 2023-24, driven by iPhone production, Apple India’s business grew beyond Rs 2 lakh crore. The remarkable success story of Apple has also amplified India’s prospects.  

The United States remains the third-largest investor in India with FDI investment worth US $ 66.7 billion between April 2000 and June 2024. 

Shantanu Narayen, Chairman, President, and CEO, Adobe, Sundar Pichai, CEO, Google, Enrique Lores, CEO & President, HP Inc, Arvind Krishna, CEO, IBM and Noubar Afeyan, Chairman, Moderna were among the prominent heads of companies, who were present at the roundtable, anchored by the Massachusetts Institute of Technology (MIT), School of Engineering.

Nvidia CEO Jensen Huang was also present at the round-table. “Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation, and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India,” Modi wrote on social media X after his meeting.

Among the key highlights was the announcement of the setting up of the first-ever national security semiconductor fabrication plant in Kolkata focused on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications.

The project is expected to enhance mutually beneficial linkages in research and development in chip manufacturing and enable game-changing advances for zero and low emission as well as connected vehicles, internet of things devices, AI, and data centers.

Mamata Banerjee, West Bengal’s Chief Minister assured “all support to the emerging investment in this frontier sector.”

“Let West Bengal be the true destination for knowledge-based Industries,” she said on social media X.

What India Needs To Do To Woo Investors

While India has taken several steps to put in place structural economic reforms by removing restrictions on foreign investment and updating bankruptcy and labour laws among others which have improved the ease of doing business, a lot more needs to be done.

According to Santander Trade, the business platform of Santander Bank, the financial services major, “persistent protectionist measures hinder the expansion of bilateral trade and pose challenges for Indian producers seeking integration into global supply chains.”

It also noted that measures including imposing “some of the highest tariffs” among major economies, promoting manufacturing localisation to foster "self-reliance," and implementing India-specific standards and regulations that effectively exclude foreign goods and services can prove to be serious hindrances for companies.

Analysts also point out that infrastructure deficits persist. Turnaround times at Indian ports despite improving are still longer than more efficient ports in China, Korea, South East Asia. World Bank's Container Port Performance Index (CPPI) reveals  that East and Southeast Asian ports excelled in 2023, accounting for 13 of the top 20 places. Only One Indian port was placed on the list at number 19. 

Red tape over clearances, especially at local levels often result in inordinate delays. Infrastructure deficits such as half-finished cities create their own problems. 

India also needs to boost its growth momentum despite increasing uncertainty in the global economy and emerging challenges.

Goldman Sachs Group Inc. has lowered India’s growth forecast for the ongoing calendar year by 20 basis points to 6.7 as government expenditure dropped 35 per cent during the April-June quarter due to general elections. For 2025, the bank has projected a 6.4 per cent growth rate for India.

As one businessman associated with organising the meeting said, "The bottom line is that if India is serious about joining the ranks of developed economies by 2047, it must work hard on removing all existing roadblocks to investments at the earliest".