US President Donald Trump announced the imposition of 25% tariff on India in July 2025 and also called the Indian economy a “dead economy”. But now American companies are expanding their business in India and have announced investments worth lakhs of crores of rupees. Companies such as Microsoft, Amazon, Google and OpenAI have announced major investments. Microsoft CEO Satya Nadella has announced a $17.5 billion (Rs 1.57 lakh crore) investment in India, which will grow India’s AI market. Amazon’s big investment On December 10, a day after Microsoft, Amazon announced a big investment in India. Amazon will invest $35 billion in the country by 2030, further strengthening its ties to one of the world’s largest global markets. The e-commerce giant plans to invest in areas such as AI and logistics infrastructure and expand its cloud computing and rapid commerce businesses. Microsoft will make the largest investment in Asia. Microsoft has announced its largest investment in Asia. After meeting PM Modi, Satya Nadella said that Microsoft plans to invest $17.5 billion by 2029. The company said that this investment will be used to expand Microsoft’s cloud and AI capabilities. How much does Google plan to invest? Earlier in October, Google announced a $15 billion investment to build a major AI hub in Visakhapatnam, Andhra Pradesh. It will be the company’s largest investment outside the United States. Google said the facility will integrate its AI infrastructure and data centers with renewable energy capacity and will be the first gigawatt-scale data center campus in India. This investment could create up to 100,000 jobs by 2030. Intel, Cognizant and OpenAI Tata Electronics selected Intel as a potential buyer for its chip plant. The deal indicates Intel’s confidence in India’s chip production capabilities. Cognizant CEO Ravi Kumar met Prime Minister Modi and expressed his commitment to India’s AI First initiative. The company announced plans to accelerate AI adoption and skills development. Various reports suggest that OpenAI is in talks with Tata Consultancy Services to launch a chapter of Stargate in India. Why are these companies coming to India? India has a large number of internet users, smartphone usage and demand for digital services. This creates a huge market for AI services, cloud services and data processing. Data, user base and quality network are essential for AI models and cloud infrastructure. These services are strong and growing rapidly in India, which provides a good investment environment. India has a large number of skilled people in technology, engineering and software development. Operational costs and operating costs for servers/data centers are much lower than in the US and other western countries. India already has many IT services, data centers, cloud service providers and a rapidly growing startup culture. This makes it a good place for US companies to set up their AI hubs, clouds or model development centers. AI and cloud technology is a big trend around the world. American companies like Microsoft, Google, Amazon want AI models, cloud services, data hubs, etc. spread around the world. They can benefit a lot from this.