SelectUSA Summit: Why Indian Billion-Dollar Investments Are Flooding Into America | ET Now

追加: 2026-05-10

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[00:00:06]>> [music] >> Hello and welcome. You're watching a very special episode all the way from Washington, DC on the Select USA Investment Summit, which went on for 3 days right here. In fact, it had over 5,500 attendees, over 2,700 business investors from 100-plus countries. It had representation from not just companies, but investors from across the globe and government representatives from the United States. They discussed around The discussions ranged around supply chain disruptions, industrial competitiveness, reshoring of supply chains, and shifts in global trade patterns. In fact, the government representatives spoke about the kind of grants that are being given to companies that are looking to invest in the United States. In fact, there are government incentives, including the CHIPS and Science Act. There are grants to encourage domestic manufacturing. There are certain areas that the government of United States is focusing on, especially when it comes to inviting FDI and investments from abroad. It includes technology, clean energy, EVs, advanced manufacturing, automation, AI, robotics, high-tech processes, and lots more. So, on day one, we heard from Howard Lutnick himself, the US Secretary of Commerce, who made a pitch to uh global investors and companies and government representatives to make in America, to manufacture in America, to set up their base here in America. And he said that America needs steel uh uh that is that is made on its own. It needs aluminum, semiconductors, and of course defense gear. In fact, he said that the trade agenda of the US administration has made it very clear that if you build here, you hire here, then the government is going to protect you and will help you get visas. He said that America first doesn't necessarily mean America alone and that a strong United States is vital for the world as the US is the light is essentially what he said. Let's take a look at exactly what he had to say in his inaugural address at the Select USA Investment Summit.

[00:02:33]Our trade agenda has made it clear the world's greatest economy in the world, if you build here and you hire here and you strengthen our industrial base, we will help you.

[00:02:48]We will assist you and we will protect you.

[00:02:52]So, that's what America first means. It doesn't mean America alone.

[00:02:58]Right? It just means that we're open for business.

[00:03:02]That we're here for our workers, we're here for our communities, and we're here also to make sure that we can take care of ourselves.

[00:03:10]Right? For national security.

[00:03:13]I mean, doesn't it make sense that we need to produce our own steel? Is that like a challenge for you?

[00:03:19]Right? You need that steel or you can't make a missile. You need to make aluminum. You need to make copper. You need to make semiconductors. You need to make pharmaceuticals. I mean, come on.

[00:03:29]Doesn't this seem common sense that there's certain attributes for the greatest economy in the world, at a $30 trillion economy that we are capable of taking care of certain fundamental things, that we can do medicine, that we can do AI infrastructure, that we are not reliant on others for critical minerals, that our power is capable here, that we can do advanced manufacturing here.

[00:03:57]These are the things that make the nation stronger.

[00:04:01]India is emerging as a major force in innovation, technology, and advanced citizen.

[00:04:08]In Bangalore, we have a lot of companies and innovators where not only developing cutting-edge technologies, but also deploying them at scale in artificial intelligence, in advanced manufacturing, and across sectors that would define the future.

[00:04:22]And to reinforce something else, the US-India economic relationship is entering a new phase, undefined by investment, industrial capacity, and technology partnership. India has incredible potential, uh, economic potential that I think for frankly for many decades was not fully realized because of economic models that India chose to pursue, but I think India is now poised to have massive economic development, and it's a lift many hundreds of billions of people out of poverty. The United States would very much like to be part of India's success story. If you look at the history of the century that we're living in, I think India is going to loom very large in the century, and we are very aware of India's importance on the world stage. I think it is very important, uh, to get a final resolution of that trade deal.

[00:05:25]In fact, speaking of investments, well, 12 Indian companies announced investments worth over $1 billion in the United States, and Indian companies pledged to invest a record $20.5 billion in the US, with pharma, advanced manufacturing, aerospace, and technology being the focus areas. Now, these companies say that while India and the United States are both looking at manufacturing domestically, however, it's just strengths that are related to raw materials and advanced technology that are going to enhance complementarities as far as the two nations are concerned. And to talk about investments, to talk about doing business in the United States, I caught up with Hindalco's Satish Pai, and here's what he had to say.

[00:06:06]The Aditya Birla Group and Hindalco have been the largest uh Indian investor in the US.

[00:06:13]We have invested around 15 billion dollars starting with the acquisition of Novelis. So, for us, the US business is a big part of Hindalco today. Yes. And that's why we are you know, I prioritized coming for the Select USA because our large 5 billion-dollar project that's going on in Bay Minette, Alabama, is very critical to the company. So, uh I think it's in short, the US and Hindalco and the Aditya Birla Group, this is a very important business relationship for the group.

[00:06:45]>> Right. So, you also mentioned about the Bay Minette project. What's progress on that? How's the progress on that coming along? And when you talk about uh you know, having a very close relationship with investments in America, what is it that we could see from the group? So, uh the 5 billion-dollar Bay Minette project, we are hoping that the commissioning will come uh on October 31st.

[00:07:07]So, this has been a large project and really the uh state of Alabama has been incredibly supportive, whether it's for land, whether it's for regulatory clearances, whether it's financing, you know, the municipal bonds that they've given us. So, I think that uh for us, this has been a uh a project that's really big and impactful. 5 billion dollars in one project, a greenfield project of aluminum rolling, probably the biggest in the world anywhere.

[00:07:35]Right. So, when you talk about uh aluminum, I have to ask you this because aluminum and copper prices, are with other metals, they have been shooting through the roof and there is volatility on that front. But is the worst over yet? What is your guidance on the kind of price hikes that we could see further or is the worst over yet? See, the aluminum prices have shot up because the Strait of Hormuz closed and about 3 4 million tons of aluminum has been taken off the market. So, it will take about 8 to 12 months for it to come back.

[00:08:07]So, I think that you're going to see aluminum prices being quite firm for the next 6 to 8 months. But after that, once the Gulf producers get their production back and start to come on the market, then the prices should correct.

[00:08:22]>> does that mean for industrial demand?

[00:08:24]I think that, you know, the demand for aluminum has been incredibly strong.

[00:08:29]Uh packaging demand, building and construction. So, today we have not seen any impact on the demand side. The it's a supply restriction that has made the price go up. That really depends on how soon the Strait of Hormuz gets opened or not. But so, one final question, I have to ask you this on the India-US trade deal, given the fact that you have significant presence here. In the United States, there is a trade team that went to the United States, it came back. What is your assessment of how soon could a deal be reached and how are you reading into the situation? So, you know, my reading of the situation is that the relationship between India and the US on a business, I think it's probably been as sound as it can get.

[00:09:10]>> Okay. And I think that the you have to look at the fundamental underlying things that happen in a business and I think that you just saw, I think, Sun Pharma announce a big one. So, I I would it's my firm conviction that India and US need each other.

[00:09:28]And I think the business relationships are going to be strong and I think that, you know, signing trade deals and all that will happen. But fundamentally, this is a a solid relationship.

[00:09:41]Currently, India has a trade uh basically tariff of 10%. Okay. And what the trade discussions with the US is uh to be at 18%, which India had agreed early on before the Supreme Court ruling.

[00:10:01]And so, the question really is is how do you justify from 10 to 18%?

[00:10:09]And then you have what you call is 301 finding coming in. It gives a lot of leverage to the president to take it up like he's done with the Chinese. Mhm.

[00:10:18]So, I think India has to walk a very very fine line trying to balance expectations back home and then trying to deal with Trump administration. Right. So, do you think there's going to be a rephrasing and redrafting of the agreement in line with what you're saying the 301 301 investigations are currently on and that could give president the leverage? Well, I would say that as my understanding is if India signs uh a trade deal by end of May Okay. is 18%.

[00:10:47]And if it uh is not signed for whatever reason then it gives the option to the president after 301 to take it in any direction. Right. So, 301 investigations, I think the USTR is going to have that hearing on May 8th is what uh we're getting to understand from communication by the USTR. Uh but you know, one would actually assume that in the midst of this crisis due to the West Asia war, you know, US has deployed uh its energies in that area and then you had that, you know, tariff disruptions last year, uh which are roiling the global economy including that for the United States as well. So, one was assuming or one was expecting that the US would be in a position uh to to of adjust because they also want to get deals done, right? After the Supreme Court invalidated uh IPRs.

[00:11:37]Well, sometime what we see is logical, practical uh does not go that well in this town.

[00:11:46]Okay. And you have to understand the the the turmoil in the state of hormones is having impact here with the consumer.

[00:11:57]Has it having impact with the farmers.

[00:12:00]And it is impacting the president's approval rating, which is in the mid-30s at the moment.

[00:12:07]And so from that perspective a 18% tariff, a deal signing with the India will be a success story.

[00:12:17]Okay. And so I think president is looking for that as part of celebration to say, "Listen, I am closing deals." So I think from that perspective, uh US is looking at a success rather than just a another uh disruption. Right. So what is the effective tariff rate that you think the administration uh will come to terms with, will accept? Well, at the moment is 18% and hopefully uh they come to understanding. I think what we have to look at is is is not just broad 18%.

[00:12:50]We need to look at where can we get the exceptions going?

[00:12:54]So this way a lot of exports from India are not penalized. It's a classic case of Brazil today. Okay.

[00:13:00]>> Brazil has a higher tariff rate, but 90% of exports are not uh they're exception.

[00:13:06]So they are willing to give a higher tariff because in a backs only 10%.

[00:13:10]Okay. So I think India has to look at from that strategy, what can we push on exception? Right. And what do you think that could be?

[00:13:18]Well, definitely you have the uh basically pharma products coming out.

[00:13:22]You have electronic goods coming out. Uh it could be also on the defense side.

[00:13:28]Uh, it could be also on the AI side. So, I think it's just a matter of uh basically packaging it and and driving it. Right. So, by May is essentially when you're suggesting that um you know, some sort of an agreement could be reached at. But But when do you think the signing of the deal could happen?

[00:13:47]I think uh the signing of deal the administration may say, "Listen, we want to do it principle to principle."

[00:13:54]Mhm.

[00:13:55]Uh and that could be uh whenever the Prime Minister comes to UNGA week in September. Right. They may target that if that's Indian government is willing to do that.

[00:14:05]Or it could be on sideline of uh G20, which is happening in December uh in Mar-a-Lago.

[00:14:12]So, it's just a matter of uh what both side agree upon and then sign the deal.

[00:14:16]Absolutely. Uh so, Mr. And when we speak about technology, we cannot not be speaking about AI given the hectic activity and changes and developments that are being seen as far as AI is concerned. And consultants here tell us that companies are still not AI-literate and they remain cautious about embedding AI into products which now might not be in the right direction.

[00:14:39]I had a conversation about this and more with Yuvika Sharma, the founder of Intilda. Here's what she had to say.

[00:14:48]So, one of the things that uh people are facing is uh and it's a problem is that they do not understand how the technology works. Right? So, of course, the pace is uh you know, moving very fast. People are adopting AI left and right, but they're not thinking about uh whether you know, AI is like the right use for you know, whatever the problem that they're trying to solve or uh they I would say they're not AI-literate.

[00:15:16]Right? So, they're just using it blindly. Even now?

[00:15:20]I think yes. You know, I'll tell you one thing. So, last year World Economic Forum published a report on responsible AI, and that was like right around fall. And they do a survey with lots of folks, executives at companies, and out of that survey only 1% of the population could answer basic AI literacy questions. So, you can imagine the, you know, stark gap, right?

[00:15:46]You have big companies >> biggest fear that companies have in an age that's dominated by AI? Because remember, we're in an in in in not really the early phases of AI, right?

[00:15:56]You had ChatGPT and similar models, chatbot models. Then there was, of course, the genetic AI, and now many say that AI is going to move into the infrastructure layer, that is the physical layer of AI. So, what is the biggest fear that companies have when it comes to the AI?

[00:16:14]So, I mean, one of the problems or the fear, I think so, the fear could be on two sides, right? One is, of course, with people.

[00:16:26]People are very worried that, you know, AI is going to replace me. And uh I would say on the company side, uh some of the companies feel that are we going to lose in the race, right?

[00:16:38]Because you have other companies who are adopting AI very fast, and what we are also finding as we talk to other companies, right? Whether it is in tech or whether it is in any other industry, it is this formal that if I don't adopt AI fast enough, I'm going to become obsolete, right? So, that is a challenge that a lot of companies are grappling with, right? Companies, and even in tech, I have friends who are working in tech, and sometimes people feel the pressure that we're not shipping fast enough, right? They are constantly working, I mean, you know, immense number of hours, right? Where they have to quickly produce things, right? Because they have to uh build and you find out, right?

[00:17:21]Every day or every week you have a new release coming out, right? So, imagine the burnout that people are facing.

[00:17:29]People are, you know, they have to quickly keep working towards it. But then you have other companies who have not caught on the bandwagon.

[00:17:36]And they're just scrambling to get on to it.

[00:17:39]>> about small and medium-sized companies because they are not very sure of >> It's also with big companies. It's also with big companies. They are scared that if we don't catch up But many big tech companies already deploying AI. Yes, so big tech companies are, but you know, you are talking about the companies that are developing the models, but you know, big tech, you know, there could be a lot of other companies as well, right? Who are, you know, working in the tech space. And the conversations I'm having, whether it is, you know, a SAS company or I'm not going to name names, you know, just to be mindful, but uh yes, a lot of companies are feeling the pressure and people who have tech products now they need to make sure that they have AI embedded into their offering as well, otherwise they are going to get obsolete as well, right?

[00:18:20]So, a lot of people are grappling. There is a lot of fear that if you don't move fast enough, you're going to get left behind.

[00:18:28]I feel like when it comes to AI, being an AI-enabled company or being like sort of an AI something company is not enough anymore. You really have to go more specific and you have to be able to show that first of all, you are in a AI-native company and then second, that you have an like industry mode like the mode of knowledge that you can actually bring to potential clients. So, you know, maybe that means preparatory data, maybe that means access to a future access to data, but there has to be something more than just being AI nowadays and it has to be very deep. So, since you mentioned about the fact that you know, a lot of companies are investing in AI, do you think that AI is a bubble essentially and the valuations of these companies are going to come down?

[00:19:10]I >> [laughter] >> I would say yes, but again, don't want to make any predictions. I think that the companies that are actually building something of value and just not just claiming to be AI just to kind of you know, ride the hype.

[00:19:22]>> But is there is there froth building up in the ecosystem that needs to go away?

[00:19:26]Is it what? Froth. Oh, yes, for sure. Yes, definitely. And I've seen so many companies even like, you know, the companies we worked with previously that suddenly AI and they suddenly have And I I've I've seen something similar previously with blockchain, for example. Not every company necessarily had to be blockchain, right? But they all were blockchain cuz that's the people that's the thing that investors were looking at. That's something that, you know, got more interest in general from the market. So, everybody suddenly started being blockchain. Right now, everybody suddenly is AI and it's been like this for the past couple years. And so, I feel for investors, it's very important to be able to distinguish if that's kind of like the froth, like you mentioned, or if it's an actual company bringing value, you know, bringing something new to the market, bringing innovation or bringing, like I mentioned before, like in maybe an industry-specific uh data moat that they can actually I think the interest is still there. Um and I know I come here, this is my third year at the SelectUSA Summit, and I see a lot of um very interested entrepreneurs trying to come here to the US. Um obviously, many of them are interested in the developments in immigration, developments with the tariffs, development with data security, data privacy. So, um but all in all, the business is still, you know, for us, at least for our firm, is still steady as before. Okay, so since you're talking about, you know, how um you know, you're advising clients on tariffs and other policies of the current administration, uh are they sort of somewhere proving to be challenges for companies to sort of venture into the United States because we did hear from the US Commerce Secretary, Mr. Howard Lutnick, uh that the US is all ready to sort of give support to companies who are ready to invest in the United States because manufacturing in America, making in America is a big theme for the current US administration.

[00:21:16]Yeah, so I think generally speaking, well, my my education and my prior background was from Europe. So, I would say coming here into the US is actually a more straightforward process that many than many people would actually think.

[00:21:30]So, they make it easy for you to come here, form your company, and start actually participating in bidding process with your own US subsidiary. And many people try are kind of shy away from that possibility. Oh, no, I don't want to launch in the US yet. I'm not ready yet. But, you know, it doesn't mean that if you have a US company here, you actually have to start doing business. You can actually start having a US subsidiary here and start engaging into conversations. And what um the speech yesterday or the other day was was alluding to is that I think they are trying to kind of accommodate many of the companies here. Obviously, there's a different administration, different ways of of approaching things, but I think generally from my perspective, um people are still interested in doing business here. And I think well, like I said, relatively speaking, it's still straightforward process. Okay. So, which which states are gathering a lot of interest from these companies that are settled abroad and they want to now start doing business here?

[00:22:27]Well, it depends on which industry and which sector you are. Um I spoke to someone from Wyoming for instance. So, they said that they have a lot of data centers there. And as you know, with the AI boom, that's also quite um you know, quite a lucrative sector. Uh if you're are in the automotive industry, you might be also in the Midwest. Um Minnesota for instance also have large corporations. But, many of you know, again, it depends on which which industry sector you are in. If you're in the consulting business, you can also be in New York for instance, where a lot of the financial institutions are. So, it will Well, first and foremost, let me answer the why question.

[00:23:08]This is the largest economy in the world, 30 plus trillion dollars, single currency, one language. I mean, there are multiple language, but English is the widely spoken language. So, this market provides a the the oomph which any businesses need.

[00:23:28]It is a very stable business environment. Uh obviously, dollar being the denomination of the world, it's a it's a US dollar, almighty dollar.

[00:23:40]Also, the ease of doing business in the United States is amazing.

[00:23:47]Right. In in other countries or other regions, there are challenges in terms of, you know, recovering your money. Yeah, you you really don't have to pick up the phone and call anybody for your money. Okay.

[00:23:59]That's That's the ease of doing business.

[00:24:02]Uh In in terms of the administrations, there I mean, I've been attending this summit.

[00:24:11]This is my fifth year. I've been doing business in this country since 1992.

[00:24:18]Seen a lot of administrations come and go.

[00:24:22]Policies, there are some changes in the policies, but the business environment remains healthy.

[00:24:30]There are absolutely, I mean, I I I don't see a difference in terms of uh any policy. I mean, there are there are changes, of course. I'm I'm I'm I'm not going to say no, but they are nothing that will deter a business person to not do business.

[00:24:46]Okay. So, when you talk about challenges, we're essentially stating that companies from abroad who want to invest in the states, uh and of course, we've seen our here governors speak about each of these states and make that, uh you know, pitch to investors, to companies from abroad.

[00:24:59]uh Uh you were saying that the global uh geopolitical environment, and of course the the policy shift is not really deterring investors. No, I mean again, we Okay, there there are geopolitical challenges.

[00:25:13]Rest of the world, US not as much so.

[00:25:18]We Well, with that, it's a wrap on this uh special edition of the Select USA Investment Summit all the way from Washington, D.C. We got you all uh the investors who spoke to us. We also got you highlights of the summit.

[00:25:33]We got you uh inputs from what the government representatives are speaking about investing in America. Remember, India has made a huge investment, and they have committed to more investments.

[00:25:42]It's going to be significant as Marco Rubio, the US Secretary of State, is visiting India in just a few weeks from now. So, how that story, along with this really pans out as far as India-US ties are concerned, that'll be interesting to watch out for. But, for the moment, thank you very much for tuning in.

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