India is currently attracting significant interest from U.S. consumers and companies. Recently, Mattel’s launch of its first Diwali Barbie doll resulted in the product selling out within a day. U.S. retailers such as Target, Costco, and Walmart are increasing their stock of products to celebrate Diwali, the Indian festival of lights, which will commence on October 31.
During Walmart’s first India Growth Summit this year, the company reaffirmed its commitment to sourcing $10 billion worth of goods from India annually by 2027. Over the past decade, U.S. imports from India have more than doubled, reaching $87.3 billion last year.
For many years, India has been a destination for U.S. companies seeking to establish back-office and enterprise support operations, thanks to its skilled workforce, low labor costs, and effective communication capabilities. This trend has led to the rise of well-known companies like Infosys, Wipro, and HCL. Economic reforms and a rapidly expanding middle class in India have propelled companies such as HDFC Bank onto the Fortune Global 500 list this year.
Viren Popli, CEO of Houston-based Mahindra Ag North America (MAgNA), a part of the Mahindra Group, has highlighted the innovative steps the company has taken. In addition to producing the world’s top-selling tractor by volume, Mahindra has developed a tractor operating on compressed bio-gas and introduced “smart” subcompact tractors. Popli also manages the automotive business in North America and oversees Mahindra Brazil, which inaugurated a new production facility earlier this year.
While Mahindra’s business in Brazil focuses on producing lower-cost basic tractors, its U.S. operations cater to hobby farmers who prefer sophisticated small machines. Approximately 15% of the U.S. market comprises machines under 20 horsepower, attracting rural lifestyle enthusiasts who purchase large parcels of land to pursue a simpler lifestyle, including small-scale farming.
According to Popli, the perception of the “India brand” is growing in the U.S., initially driven by technology and now expanding as many Indian brands enter the supply chain and contribute to senior leadership across various organizations.
Mahindra, known as one of the largest Indian business-to-consumer brands in the U.S., is aware of geopolitical factors influencing their sales. At a recent dealer conference, Popli noted inquiries from about ten dealers regarding the Chinese content in their products, indicating that this is a growing concern amongst consumers.
For some U.S. customers, Mahindra is perhaps best recognized as the principal sponsor of the No. 14 NASCAR Cup Series team and driver Chase Briscoe. The community primarily comprises rural viewers, according to Popli.
In other news, Goldman Sachs analysts have forecasted that the S&P 500 could potentially yield a nominal return of just 3% annually over the next decade, with an upper estimate of 7%, a reduction from the 13% average annual return observed over the previous ten years. During Tesla’s upcoming earnings call, investors will closely monitor the company’s gross margin, vehicle sales outlook, and the demeanor of CEO Elon Musk, as his increasing political involvement might impact the stock’s future. A report by the Committee for a Responsible Federal Budget suggests that the policies proposed by former President Donald Trump could accelerate the depletion of Social Security’s trust fund. If enacted, these policies would eliminate taxes on Social Security benefits, tips, and overtime pay.
