by Anand Verma, Consulting Manager, Tractus India
When a U.S.-based EV battery manufacturer needed to choose between sites in Tamil Nadu, Karnataka, Gujarat and Telangana, the decision came down to more than just land and labor costs. Using India’s newly digitized Industrial Land Bank (IILB), we identified parcels with proximity to ports, grid infrastructure and skilled workers. The National Single Window System (NSWS) helped fast-track approvals across ministries, cutting the timeline from nine months to under four. The outcome was a $180 million gigafactory in Karnataka, now a key part of India’s EV battery manufacturing landscape.
This isn’t an isolated story. As global competition intensifies, particularly with China expanding its industrial reach, the United States is forging deeper ties with India. This partnership goes beyond diplomacy. It’s reshaping where and how things get made.
Think of it this way: The U.S. brings speed, capital and innovation (the qualities of an eagle). India offers endurance, scale and a vast, technically skilled workforce (the strength of an elephant). Together, they’re reconfiguring supply chains, building advanced manufacturing ecosystems and aligning on critical technologies from semiconductors and clean energy to defense and digital infrastructure. Smart site selection is at the center of this transformation.
Stronger Together: What’s New in 2025
Despite a recent tariff standoff (marked by U.S. duties of up to 50% on Indian goods and 100% on pharmaceuticals), the two countries are now cooperating more closely than ever. Washington’s “China + 1” strategy offers short-term relief but lacks long-term depth. India, meanwhile, has taken a different approach. With new trade agreements signed with the United Arab Emirates, Australia, the UK and the European Free Trade Association (EFTA), alongside stable commercial ties with China and Russia, India is positioning itself as a reliable and adaptable partner in a shifting global landscape — what some call an “India + Many” strategy. Since early 2025, leaders from both nations have announced several strategic initiatives:
- Trade goal: A joint commitment to more than triple bilateral trade, targeting $500 billion by 2030, up from $131.8 billion in FY 2024-25.
- Defense roadmap: A 10-year plan for joint production and technology sharing across critical sectors including semiconductors, defense manufacturing, clean energy and advanced electronics.
- Technology collaboration: The launch of the TRUST initiative, focused on AI, semiconductors and space technology.
U.S. companies are backing this momentum with substantial investments. Microsoft’s $3 billion commitment to India’s AI and cloud infrastructure will expand data centers in Hyderabad, Pune and Bengaluru. Apple’s iPhone assembly operations (primarily based in Tamil Nadu and Karnataka) surpassed $22 billion in April 2025, a 60% jump from 2024. Over three years, Apple’s India revenue grew 1.5 times, reaching $9 billion in FY 2024.
Energy security is another area ripe with opportunity, and India’s renewable energy sector offers U.S. companies openings in solar module and battery manufacturing, EVs, wind farms and grid infrastructure. There’s also growing demand for rural electrification and significant potential for joint R&D investments (green hydrogen, grid integration technologies, etc.).
What Sets India Apart
Two factors distinguish India from other Asian markets. First, policy reform has accelerated. Easier foreign direct investment rules, a simplified tax system (GST) and national programs like Digital India and Make in India up the appeal for global companies to establish operations. Second, India’s demographics are unmatched. About 65% of the population is of working age. By 2030, according to the World Economic Forum, 80% of households are expected to be middle-income, translating to $5.2 trillion in consumer spending power.
According to the American Chamber of Commerce in India, U.S. firms have already invested $66 billion in the country. These aren’t one-off transactions. They reflect a strategic focus on where to build, how to invest and what to expand. Location decisions are now part of a shared strategic agenda between India and the U.S.
With a young, skilled workforce of 500 million, rising consumer demand and a strong industrial base, India is attracting major U.S. investment. States like Gujarat, Delhi NCR, Madhya Pradesh, Karnataka, Maharashtra, Tamil Nadu and Telangana offer access to talent, infrastructure and growing markets.This investment wave aligns with the Indian government’s long-term development goals under the Viksit Bharat (“Developed India”) vision, which aims to transform India into a fully developed nation by 2047, the country’s 100th anniversary of independence.
The Real Challenges
India offers scale, but it’s not without friction.
Land acquisition remains a major hurdle, especially in semi-urban zones. Despite digitization efforts, delays in clearances and inconsistent land records persist. In one case, a client’s preferred site in Madhya Pradesh was stalled due to overlapping ownership claims and was resolved only after six months of local mediation.
Infrastructure challenges are real. While industrial corridors look strong on paper, last-mile logistics, power supply and road access vary significantly from site to site. Our team conducts on-ground verification for every location to ensure it meets operational needs, not just promotional promises.
Government incentives can be attractive, but delivery speed depends on local officials. The interplay between state and central authorities can slow progress. Having a local advisor or partner is critical to keeping projects on schedule.
In our experience, every project demands careful planning, starting with on-the-ground research, thorough site analysis and real risk assessment. Challenges around land, permits and infrastructure are addressed through local expertise, strong government relationships and clear execution.
Key Considerations for U.S. Investors
Based on our site selection work across India, companies should focus on:
- Starting early with both state and central government agencies to avoid delays and build relationships.
- Staying flexible and committed (India rewards long-term players who adapt to local realities).
- Using digital platforms like NSWS and IILB to accelerate approvals and identify land, while always verifying details on the ground.
- Planning for land acquisition and infrastructure gaps early, as these can significantly affect timelines and costs.
- Working with experienced local partners who understand site selection, risk evaluation and how to navigate India’s regulatory landscape.
India-U.S. ties are no longer symbolic but are actively reshaping global industry. For companies evaluating investment in India, now is the moment for the eagle and the elephant to build the future together, one smart site at a time.