Love-hate relationship? Trump threatened tariffs but also planned big investments in India
India Today
Of the manufacturing and industry investments announced in 2025, nearly 95 per cent or $4.7 trillion, are in five countries: the UAE, Qatar, Japan, Saudi Arabia, and India.
The India-US trade deal has been announced. US President Donald Trump shared India Today magazine’s “Newsmakers of the Year 2025” cover, featuring Prime Minister Narendra Modi and him, on social media. Things seem to be heading in a positive direction, but this wasn’t the case a few months ago.
Trump repeatedly threatened India with tariff after tariff if the country continued to buy Russian oil. However, even amid these threats, the US had planned large investments in India. In fact, India is among the top five countries where Trump’s ambitious investments in manufacturing and industry have been planned.
“Since President Donald J Trump returned to office, his America First economic policies have sparked trillions of dollars in new investment in US manufacturing, technology, and infrastructure,” the White House said. The US has announced investments of $9.6 trillion.
More than half of these investments — $4.8 trillion — were announced for manufacturing and industry. About $2.7 trillion in investments were announced for technology and artificial intelligence. And $0.78 trillion was announced for energy and the environment.
Of the manufacturing and industry investments, nearly 95 per cent or $4.7 trillion, are in five countries: the UAE, Qatar, Japan, Saudi Arabia, and India. Investments in the UAE, Qatar, and Saudi Arabia are in the fields of technology, aerospace and energy. In Japan, it is for auto plants and US steel. And in India, it is for mutual trade expansion, the White House said.
Singapore, the US, Mauritius, the Netherlands, and Japan have been at the top of the list of foreign direct investors in India. The share of the US in overall FDI received in India increased significantly in April–September 2025. The US accounted for 11 per cent of FDI in India during 2023–24 and 2024–25, but the share shot up to 19 per cent in 2025–26 (between April and September), according to the Department for Promotion of Industry and Internal Trade.
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