The US and India—a Partnership for Economic Growth | Opinion

Indian investment in the United States is a critical driver of economic growth, job creation, and industrial revitalization. As the chairman of Aditya Birla Group, the largest Indian investor in the U.S., I have seen firsthand how Indian companies are contributing to American prosperity. With India emerging as a global economic powerhouse, and the U.S. seeking to strengthen domestic manufacturing and supply chains, there has never been a better time to deepen Indo-U.S. economic ties.

Indian Prime Minister Narendra Modi's visit to the U.S. is expected to play a crucial role in enhancing trade and investment ties between the two countries. High-level discussions will focus on key areas such as defense collaboration, advanced technology partnerships, and expanding trade agreements that benefit American businesses.

As one of the first foreign leaders to visit President Donald Trump post-inauguration, Prime Minister Modi's arrival is well timed to deepen our strategic partnership and encourage increased Indian investment in the U.S. With both nations prioritizing supply chain resilience and manufacturing expansion, this visit can accelerate initiatives that directly contribute to job creation and industrial growth across multiple sectors.

Indian businesses have invested more than $40 billion in the U.S., generating nearly 425,000 American jobs. This is a significant increase from just $22 billion in 2020, which supported 125,000 jobs. These investments span multiple sectors, including manufacturing, steel, automotive, and technology—industries that are central to the U.S. economic agenda.

Novelis, an Aditya Birla Group subsidiary, has expanded U.S. operations, strengthening domestic aluminum production and reducing reliance on overseas supply chains. This directly supports the U.S.' industrial policy objectives and the broader push for supply chain resilience.

The U.S. has long been a global leader in innovation, and Indian investment complements this strength by enhancing research, development, and industrial output. Indian companies operating in the U.S. are not just bringing capital; they are also creating advanced manufacturing hubs, supporting STEM education initiatives, and collaborating with American firms to drive technological advancements.

The Indo-U.S. economic relationship has evolved significantly over the past two decades. Trade between the two countries reached an estimated $191 billion in 2022, with U.S. foreign direct investment (FDI) in India increasing by 15 percent from 2021 to $51 billion. Indian investment in the U.S. underscores the commitment of Indian businesses to strengthening bilateral economic ties.

While trade between our counties continues to expand, there are opportunities to more closely align on beneficial agreements, particularly in areas such as high-tech manufacturing, clean energy, and defense. India's recent review of import tariffs may also provide further openings for U.S. businesses to expand exports in key sectors, including luxury goods, solar technology, and chemicals.

India is now the most populous country in the world. The U.S. is the world's largest economy. Our two nations must work together to advance shared economic interests. Indian investors are eager to partner with American firms and policymakers to further expand investment and job creation in the U.S.

The Trump administration has an opportunity to champion these investments by ensuring robust incentives for foreign direct investment, fostering pro-business policies, and strengthening supply chain partnerships. By doing so, the U.S. can attract even greater Indian capital, fortify its manufacturing base, and drive long-term economic competitiveness.

As two of the world's largest democracies, the U.S. and India have an incredible opportunity to shape the future of global trade and innovation. A strong, collaborative approach will ensure economic prosperity that benefits American businesses, workers, and communities while reinforcing the U.S.' strategic partnership with India.

Kumar Mangalam Birla is the chairman of the Indian multinational Aditya Birla Group, which operates in 40 countries across six continents. Mr. Birla chairs the boards of all major Group companies in India and globally including Novelis Inc., Birla Carbon, Aditya Birla Chemicals, Domsjö Fabriker, Terrace Bay Pulp Mill, Hindalco Industries Ltd., Grasim Industries Ltd., UltraTech Cement Ltd., Aditya Birla Fashion and Retail Ltd., and Aditya Birla Capital Ltd. Aditya Birla Group is the largest Indian investor in the U.S., with more than $15 billion invested to date, which has led to over 5,000 new jobs in 15 states.

The views expressed in this article are the writer's own.