Post-reform expansion and technology boom
Following the reforms in the 1990s, major Indian conglomerates and technology firms began to look to the American market to tap into Western markets, set up nearshore service delivery centres, and secure local talent.
This era witnessed an IT and services sector boom with demands rocketing to digitise American corporations, and it is when companies like Infosys, Wipro and Tata Consultancy Services (TCS) firmly rooted their massive footprints in the US, the Consulate General of India in Atlanta stated.
Diversification into advanced sectors
The Indian companies’ investment in the United States expanded to manufacturing and research and development (R&D), and in recent years, the Indian conglomerates have diversified from IT and services to pharmaceuticals, advanced manufacturing, automotive, energy, financial services, among others.
Indian firms across the sectors are eyeing overseas markets in search of newer products and technologies for their next burst of growth, Reuters reported.
Landmark acquisitions in pharmaceutical industry
India’s pharmaceutical sector is now leading with a significant share of investment in the United States, with more than $19 billion in planned investments in manufacturing, research and development, and new facilities.
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Sun Pharma has announced it is buying American pharmaceutical company Organon in a deal valued at about $11.75 billion, including debt, making it the largest acquisition by an Indian pharma company, Reuters reported.
Outbound transaction surges and strategic driver M&A
The Sun Pharma deal reportedly shadowed the Indian IT firm Coforge’s acquisition of US-headquartered artificial intelligence company Encora for $2.35 billion, and Tata Motors’ $4.45 billion purchase of Italian commercial vehicle manufacturer Iveco in July 2025.
Data from advisory firm Grant Thornton Bharat showed that the first quarter of 2026 has seen 56 outbound transactions valued at nearly $4 billion.
The factors leading to a bullish outbound Merger and Acquisition (M&A) have been proximity to customers, protection from trade barriers, and control over distribution, Reuters reported, quoting Bhavesh Shah, managing director of investment bank Equirus Capital.
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High-level commitments at SelectUSA Summit
Indian companies announced a record $20.5 billion in investment in the United States at the SelectUSA Summit held last month. “These investments showcase the strength and attractiveness of the US market for foreign investors,” the US Embassy in India stated.
At the SelectUSA reception in New Delhi, US Ambassador to India Sergio Gor said, “I am proud to advance our goal to double US-India bilateral trade to $500 billion by 2030. Through fair, balanced, and mutually beneficial trade, we’re attracting world-class investment to the United States and creating shared prosperity for both nations.”
Macroeconomic contributions to job creation and heavy manufacturing
In terms of job creation and FDI, the top 100 Indian companies contributed a foreign direct investment of $40 billion into the US, with the creation of over 425,000 American jobs across all 50 states, as per a report published by the Confederation of Indian Industry (CII) for 2023.
To serve the American automotive and aerospace sectors, Indian firms like Hindalco Industries (through their US subsidiary, Novelis) and Bharat Forge have invested heavily in their aluminium and industrial processing plants in the US.
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As America marks 250 years of independence, Indian investment has become an increasingly important pillar of the US economy. What began with Tata’s New York office in 1945 has evolved into billions of dollars in investments, hundreds of thousands of jobs and a strategic economic partnership that continues to deepen.
