A dozen global CEOs place big bets on India amid accelerating growth
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Apple chief executive Tim Cook said growth in India accelerated in the June quarter with the iPhone maker reporting record revenue driven by double-digit expansion in smartphones, Macs and services. It's not just Apple that's upbeat on India. A dozen global chiefs of large companies such as Coca-Cola, Unilever , Reckitt Benckiser, PepsiCo, Nestle, Mondelez, Whirlpool, LG, Domino's, AO Smith and FedEx have renewed their bet on the country after a challenging phase. The CEOs were speaking on earnings calls for the last quarter.Cook said new Apple retail stores—four of them—will open in India later this year, adding that most of the iPhones sold in the US were assembled in India in the last quarter amid uncertainty fuelled by US President Donald Trump's tariff talk. Apple currently has two stores in the country, in Mumbai and Delhi.Executives across companies said there is a visible revival of demand in India after months of slowing sales. They are tapping into this recovery with more investments, distribution, equipment and innovation. 'We've seen some really strong volume growth in India and China,' said Kris Licht, global chief executive officer of the British Reckitt Benckiser Group Plc, maker of Dettol soap and Lizol disinfectant cleaner. 'Of course, these economies may not be immune to shocks that could roll through the global economy. But we expect sustained volume growth here and we're scaling up large innovation.'India is a key growth market for global companies given that various large categories are still underserved. Companies said they are increasing their focus on India with the revival of demand visible after unseasonal rains and geopolitical tensions weighed down sales since March.This came on top of a continued overall slowdown as inflation-hit consumers cut back on discretionary spending over the past two years. Research firm Numerator (formerly Kantar) said in a report last week that demand for groceries, and household and personal care slowed to 3.9% by volume year-on-year in the June quarter, impacted by unseasonal rains.'In the case of India, it's never going to be a straight line and indeed Q2 was not. But we are very bullish on India overall and optimistic about recovery,' said James Quincey, global chief executive of Coca-Cola. 'We've got a strong plan from a marketing and innovation point of view.… with some reenergised focus.'Coca-Cola's unit case volume declined 5% in the Asia-Pacific region in the quarter. It attributed this to a decline in India due to the early onset of the monsoon and geopolitical tensions 'after a strong start to the year', Quincey said. Rival PepsiCo had also reported a decline in its beverage business in India for the 12-week period ended June 14 on account of early rain, but the beverage and snacks maker's global chief executive Ramon Laguarta expressed confidence in India. 'We will adapt our price pack architecture to offer consumers more value and convenience,' he said. The summer months between March and July generally contribute over half of annual sales for soft drink makers.Karan Bhatia, partner, consumer products and retail sector, EY-Parthenon, said: 'Urban growth has been lagging largely because wage inflation was much lower over the last few years. But now, given the closing gap between wage inflation and overall inflation, we expect urban growth rates to hold steady.'Bhatia added that urban growth is expected to improve over the next four-six quarters and get back to 7-8%. 'While there are some consumption headwinds such as layoffs in the IT sector, at the same time, there is change in skill sets that are emerging and I think new jobs will come up,' he said.American refrigerator and washing machine manufacturer Whirlpool Corp's chief financial officer James W Peters said sales in India are lagging initial expectations due to the geopolitical trouble and an unusually cool summer selling season in the second quarter. Whirlpool is in the midst of selling a majority stake in its Indian operations to 'large thirdparty investors'. The company expects this to close by the year end, the management said.Meanwhile, for Dove soap maker Unilever, the past month has seen growth slowing. Apart from that, it's also dealt with the sudden exits of its global and India chiefs. Unilever's global new chief executive officer Fernando Fernandez said Thursday said it would invest disproportionately in two of its largest markets, the US and India, 'to ensure it gets benefits of the parent's scale, advantage and portfolio footprint'. Another category that's seeing green shoots is quick service restaurants. Despite the ongoing slowdown amid intensified competition, they still see India as a better performer than many global markets.Domino's Pizza Inc said its growth in Asia last quarter was driven by India. Global chief financial officer Sandeep Reddy said it expects to see 'significant growth' in both India and China. 'I think Jubilant (which has franchisee rights for India) talked about their fiscal year 250 stores in India,' he said.In the case of Apple, industry executives said the new stores are expected to be unveiled next month ahead of the festive season as the company launches new models of the iPhone and other devices. The four new stores are to open in Bengaluru, Mumbai, Pune and Noida.Researcher Canalys has estimated Indiamanufactured smartphones account for 44% of the total imported to the US in the June quarter, up from 13% in the year-ago period. Industry tracker Counterpoint Research said in a report this week that the Indian smartphone market's wholesale value rose 18% year-on-year in the April-June period, reaching its highest-ever quarterly value. It said the iPhone 16 emerged as the most-shipped device in the period, highlighting strong consumer demand.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Print
an hour ago
- The Print
No duty concessions to US on agri, dairy, GM foods: An explainer
Earlier, this duty was to be imposed from August 1. The President has also not specified the penalty which he has announced on India for buying crude oil and military equipment from Russia. With the US not able to finalise a deal with India so far, US President Donald Trump on Thursday announced imposition of an additional 25 per cent import duty on Indian goods entering American markets from August 7. New Delhi, Aug 2 (PTI) India has toughened its stance on extending duty concessions on agri products, dairy and GM foods in the proposed bilateral trade agreement (BTA) with the US. Here is a list of Q&A (questions and answers) to explain reasons behind India's stand and impact of US tariffs on labour-intensive sectors: * What is the India-US bilateral trade agreement (BTA)? – India and the US entered into negotiations for a fair, balanced and mutually beneficial BTA in March 2025 with a target to complete the first tranche/phase of the pact by fall (October-November) of 2025. So far, five rounds of talks have been completed. For the next round, the US team, headed by Assistant US Trade Representative for South and Central Asia Brendan Lynch, is visiting India from August 25. * What is the aim of the BTA? – Normally in a trade agreement, two trading partners either significantly reduce or eliminate import duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and increase two-way investments. The India-US BTA is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the present USD 191 billion. *What are the major demands of the two countries from each other in the BTA? – The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, agri goods, dairy items, apples, tree nuts, and genetically-modified crops. India is seeking the removal of this additional tariff (25 per cent now) and cut in tariffs on steel and aluminium (50 per cent), auto sector (25 per cent), labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. *How much tariff is imposed by the US on Indian goods at present? – India's average import duty is about 17 per cent, while the US' is 3.3 per cent. On April 2, the US announced to impose 26 per cent duty (16 per cent reciprocal tariff and 10 per cent baseline tariff). At present, only the baseline tariff is in force. It is over and above the existing import duty on Indian goods. For example, before April 2, the Indian textiles were attracting a 6-9 per cent tariff in America. With the baseline tariff, it rose to 16-19 per cent. But from August 7, the sector will attract a 31-34 per cent duty. The baseline tariff will be replaced by 25 per cent duty notified on July 31 by the White House. However, certain products are exempted from these tariffs such as pharmaceutical, electronics and energy products. * From when the 25 per cent duty will come into force? – The duty, announced this week, will come into force from August 7 (9.30 am IST). The executive order has also clarified that goods in transit until October 5, 12:01 am eastern daylight time (EDT), or 09:30 am IST, will be subject to a 10 per cent tariff, provided that such goods have entered into transit before August 7 12:01 am EDT. *Why India is not ready to provide duty concessions on dairy, agri and GM foods? – Agri: Farm livelihoods are at stake. This is a politically and economically sensitive area as over 700 million people in India's rural economy are dependent on the sector. If India removes tariffs, cheap, subsidised US grains could flood Indian markets during global price crashes. Unlike the US, where agriculture is corporatised, Indian farming is a livelihood issue. Tariffs are essential to protect small farmers, manage price volatility, and ensure food security. Dairy: India wants to safeguard its small farmers. GTRI stated that the US argues that India's GM-free feed certification and facility registration protocols effectively bar American dairy imports. 'Indian rules prohibit imports from animals fed with animal-derived feed'for example, butter from a cow fed meat'due to religious sensitivities. India considers this policy non-negotiable,' GTRI has said. GM Food: These are created by inserting specific genes, often from bacteria, viruses, other plants, or occasionally animals, into a plant's DNA to introduce new traits, such as pest resistance or herbicide tolerance. Allowing the import of GM products such as soybean meal and distillers dried grains with solubles (DDGS) for animal feed would affect India's agricultural exports to the EU, a key destination for Indian exporters. PTI RR ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
an hour ago
- Time of India
Most iPhones sold in US made in India, says Cook
Apple CEO Tim Cook confirmed on Thursday that 'majority' of iPhones sold in the US in the past quarter were made in India despite US President Donald Trump's regular rants about it. Meanwhile China, erstwhile production giant, is playing second fiddle and is used more to service non-US markets. Cook, speaking to analysts after quarterly results, said that India has been the mainstay when it comes to producing iPhones for the US, while Vietnam is the location for making other products for America such as MacBook, iPad and Watch. 'In terms of the country of origin, it's the same as I referenced last quarter. There hasn't been a change to that, which is, vast majority of iPhones sold in the US, or the majority, I should say, have a country of origin of India,' the Apple CEO said. On China, Cook said, '… the products for other international countries, vast majority of them are coming from China.' While the Trump administration imposed 25% tariffs on India, smartphones, computers, and other electronic devices are exempted from the reciprocal tariffs for now. Trump has been pushing Apple and Cook not to make the iPhones in India for meeting needs of US consumers. 'I had a little problem with Tim Cook… I said to him, my friend, I am treating you very good… but now I hear you are building all over India. I don't want you building in India,' he said during his visit to Doha in May. Cook's clear stance on India manufacturing, is being seen as a signal that Apple stays bullish on India, especially as the country is also consistent in showing strong growth in local sales. Cook said revenues in India are witnessing record growth, led by growth in sales of iPhones. India is among the high-growth markets for Apple, which recorded 10% growth globally in quarterly revenues, closing the quarter at $94 billion. 'We saw an acceleration of growth around the world in a vast majority of markets we track, including greater China and many emerging markets, and we had the June quarter revenue records in more than two dozen countries and regions, including the US, Canada, Latin America, Western Europe, the Middle East, India, and South Asia. These results were driven by double-digit growth across iPhone, Mac, and services.' The Apple CEO also said the company is in the process of expanding its retail presence in India by opening more stores. On sales, India was again amongst the high-growth countries.
Hindustan Times
an hour ago
- Hindustan Times
Short-term hiccups, long-term rewards
That this is not a good week for India-US relations is an understatement. With 25% tariffs, threat of a 'penalty' for purchasing oil and military equipment from Russia, criticism for being a part of the Brics grouping, and sermons over an apparently 'dead economy' and 'obnoxious non-monetary trade barriers,' US President Donald Trump has made clear that India, who he still calls a 'friend', is high on his imagination. His irritation might even be personal. It's difficult to say. The conclusion of what appears to be a last-minute trade agreement with Pakistan, still with 19% tariffs, and a plan — the details of which are best known to the President — to develop untapped and 'massive oil reserves' within Pakistan is striking, if not mystifying to global oil experts. Understandably, within India, anger has dimmed the vision for promise in a relationship that has transformed in the past two decades. Well known television anchors have selflessly advised the government to 'draw a line' because, apparently, 'Trump always chickens-out'. Given that the Indian Parliament is in session, news channels have one sound bite after another on this crucial relationship, the state of the Indian economy, and much else. Friends in Washington D.C. who have spent a lifetime building trust between the two countries are appalled. 'What is lost,' argues Evan Feigenbaum, a former US official who played a key role in getting the US-India civil nuclear agreement across the line, 'is trust that took 25 years of painstaking, hard, bipartisan work and a huge lift by advocates in both countries'. Trust, the former official argues, is 'hard to build, easy to lose'. To be sure, within India, those who have remained sceptical, to put it mildly, of deepening US-India ties find themselves back in the limelight. Russian social media handles are electrified. 'We stand with India' are lines being circulated on WhatsApp groups and through unattributable handles. There is little doubt that in some office corner in China, a disinformation campaign is on the loose. Yet, whilst fully acknowledging the complexities woven into these difficult days for Indian and American interlocutors who have battled hard for a better future, this is neither the time for India to engage in grammar wars — this can be left to anchors and pundits alike — or, in fact, give-up on the functional aspects of the relationship. Understandably, there will be an impulse to pause ties across the board. Politically, it might be prudent too. But this is the time to demonstrate a version of altruism keeping the future in mind. For US experts, the term altruism refers to some strange conceptualisation of benevolence. Supporting India without asking for something in return, they would argue, was the spirit that drove American officials to go out of their way to accommodate India's civil nuclear ambitions. Currently, the verve is to turn altruism on its head, and for India to give more than it gets — to get past Trump 2.0. Many in India will disagree with this conceptualisation. I do. But that's another matter altogether. What is needed is an altruism not to react to a President who may well be negotiating for a better day or determinately pushing India where it hurts. He may hit India with 30% tariffs next week. His negotiators and their counterparts within India, who in all likelihood had agreed on terms for the first tranche of the trade deal, may still prevail. It is impossible to tell. What is clear is that no one in the US, including those within the White House can second guess Trump's next move or tweet. What is required is for India to be lingually altruistic to a President, who only in part controls the temperature and shapes the trajectory of a relationship that has proliferated well beyond government ties. This is the real success of the US-India relationship: The creation of a wide and spirited ecosystem that is fusing ties that go well beyond the government and foreign military sales. This is not to say that the drum that beats within the White House is not important. It is not necessarily all-important. The trust that has been built may not, in fact, be that easy to lose. Neither can it be taken for granted any longer. But this will require persistent engagement at the functional level and within this broader ecosystem. There are some 1,500 American Global Capabilities Centres peppered across India. Cutting-edge American defence platforms are being assembled in Hyderabad. Every major American technology firm has deep investments in India. This number is only growing. India's space companies service contracts for the US Space Force. The lists of these intersections are almost countless. For India's own economic and technological growth, a good part of the future lies with the US beyond Trump. This, of course, does not mean taking the bait for geopolitical realignments, which the government seems firm on. And rightly so. In fact, in a couple of months, the US may even strike an agreement with Russia, turning the tide on the current pressure on oil sales. If the Quad summit takes place in October or November, there is still an opportunity to functionally streamline and add substance to the myriad of working groups from cyber and infrastructure to space and critical and emerging technologies. AI infrastructure deals are unlikely, as of this moment, to stop in their tracks. India will host the Global AI Impact Summit in February 2026. Every technology company in the world wants to be involved, and all American firms want to send their top brass to Delhi. This is an opportunity to further deepen an already invested ecosystem. In sum, there is no doubt that India is in a tight spot. But not an impossible one. As of this moment, there is nothing to suggest that all is lost. It is not. Yet, at the functional level from government to industry and from technology to investment portfolios, there is a need to engage — for the sake of a relationship that has the space and dexterity, at least for a little time, to bridge ties beyond normalcy. Notwithstanding all the noise on the television channels and in Parliament, it is in India's interest to be linguistically altruistic for the sake of a relationship that has the space and dexterity, at least for some time, to bridge ties beyond immediacy. Rudra Chaudhuri is director, Carnegie India. The views expressed are personal.
