India has recorded more than USD 53.5 billion in investment commitments so far in December from US-based Tech giants, largely driven by a wave of big-ticket announcements from US-based technology companies betting aggressively on the country.
The announced investments include Amazon’s planned USD 35 billion, Microsoft’s USD 11 billion, Cohesity’s over USD 1 billion, and the entry of cybersecurity firm Wiz into the Indian market. In addition, Tata Electronics and Intel signed a strategic agreement that positions India as a potential semiconductor manufacturing hub.
The early December announcements come at a time when New Delhi is positioning technology, AI infrastructure and semiconductor manufacturing as strategic pillars to boost competitiveness and reduce import dependence.
Interestingly, US President Donald Trump’s skepticism and the absence of an India-US trade deal have done little to dampen American investor interest in the country.
Amazon, Microsoft Lead The Investment Wave
Amazon’s USD 35 billion commitment, its largest in India to date, will go towards expanding cloud infrastructure, AI capabilities, logistics, and SMB digitisation. “It is undoubtedly positive news that Amazon is committing such a large investment into India, especially in AI, cloud, SMB empowerment, job creation, and strengthening India’s innovation ecosystem,” said Amit Chaurasia, Data Infrastructure Expert and Founder of Dataneers.
He added however that the scale of incoming capital also demands stronger regulatory oversight. “As an Indian, I believe it is equally important to view this development with a balanced and cautious lens. The responsibility lies not only with global companies entering India, but also with how effectively the Indian government regulates and monitors such investments.”
Microsoft, meanwhile, announced a sweeping USD 17.5 billion expansion, including new data centres and AI skilling initiatives, making India one of its most significant global growth markets.
Cybersecurity unicorn Wiz also confirmed its India entry this month, setting up a dedicated engineering and R&D presence as part of its Asia expansion strategy.
Cohesity’s $1 Bn-Plus Bet On India
US-based data management firm Cohesity said it will invest over USD 1 billion in India over the next several years. “India is not just a talent hub, it is one of the fastest-growing data markets in the world,” CEO Sanjay Poonen told BW Businessworld earlier.
Cohesity inaugurated a new office in Bengaluru, which Poonen described as “one of the most modern” he has seen in his career. He said the city remains central to the company’s global strategy but warned that rising urban challenges could erode its competitiveness.
Tata-Intel Semiconductor Pact Adds Strategic Depth
Another important announcement this month came from Tata Electronics, which disclosed a strategic partnership with Intel. The MoU explores opportunities for Intel to use Tata’s upcoming USD 14 billion semiconductor fabrication plant in Gujarat and its outsourced assembly and testing facility in Assam.
The deal marks Intel’s potential participation in India’s semiconductor ecosystem for the first time. The companies will also collaborate on AI-powered personal computing solutions for the Indian market, which is projected to become one of the world’s top five tech consumption hubs by 2030. The partnership potentially strengthens India’s ambitions to build a full-stack semiconductor value chain, from design and packaging to advanced manufacturing.
A New Phase Of Investor Confidence, But Also Rising Expectations
According to Vivek Agarwal, Global Policy Expert and India Country Director at the Tony Blair Institute, the scale of recent investment signals structural confidence.
“Amazon’s USD 35 billion comes on the heels of similarly sized investments announced by other tech giants such as Google and Microsoft. This demonstrates the conviction that India is part of the world’s long-term tech architecture,” he said. “Global investors are voting with their wallets, not their words. They see scale, talent, and crucially trajectory.”
But Agarwal cautioned that sustaining momentum will require reforms and infrastructural resilience. “India has momentum, and it will have to match that momentum with stable rules and capable institutions. If India sustains macro stability and deepens reforms, this wave of FDI can shift us from a service-led economy to a productivity-led, innovation-forward powerhouse.”
R&D Gaps And The Risk Of Remaining A Consumption Market
Agarwal added that India must avoid becoming only a consumer of global technologies. “There is the well-documented need to increase our R&D spend and to build problem statements that cater to Indian needs. But India’s innovation challenge is not ideas — it’s conditions.”
He said breakthrough innovation requires “tolerance for failure” and living conditions where researchers “can breathe, not hustle for basics.”
“Right now, we celebrate startups but underinvest in scientists,” he added. “If India wants frontier research, it must protect curiosity and let long-term thinking outrun short-term targets. This can only happen if industry steps up with long-term commitments.”
Chaurasia also felt this was a concern. “We are only becoming consumers of technology and not the producer of it, which may be detrimental for our country in the long run,” he said.
Infrastructure To Become A Deciding Factor For Future Capital
Infrastructure disparities across Indian cities could shape the next decade of FDI distribution, Agarwal said. “While some cities are losing out because of poor infrastructure, others such as Hyderabad, Pune, and Chennai are benefiting because they offer a more reliable operating environment,” he noted. “Investment flows to places where friction is low, even within the same country.”
He warned that cities unable to fix basic issues risk being bypassed. “This is pushing India toward a multi-city tech model rather than a single Silicon Valley. That is healthy. But the warning for cities with poor infrastructure is clear: if they don’t fix it, they risk losing the next decade of growth to hungrier cities.”
Cohesity’s Poonen echoed the same concerns specifically for Bengaluru, where he grew up. Long commutes and infrastructure bottlenecks “could push companies to look for alternative hubs,” he said.
“If we don’t solve this, some tech companies may give up and move out of Bengaluru,” he added. |
