In the wake of escalating tensions between the United States and India over tariffs, American multinational companies are facing calls for a boycott in the South Asian nation. From household names like McDonald’s and Coca-Cola to tech giants like Amazon and Apple, these companies are under scrutiny as business executives and supporters of Prime Minister Narendra Modi fuel anti-American sentiment.
India, as the world’s most populous nation, has emerged as a crucial market for American brands seeking to tap into a growing base of affluent consumers. The allure of international labels as symbols of social mobility has driven the rapid expansion of U.S. companies in the country. Meta’s WhatsApp boasts the largest user base in India, while Domino’s Pizza has more outlets than any other brand. Beverages like Pepsi and Coca-Cola dominate store shelves, and the opening of new Apple stores or Starbucks cafes still draw crowds.
The imposition of a 50% tariff on goods from India by former U.S. President Donald Trump has sparked a wave of calls to support local products and shun American brands. While there has been no immediate impact on sales, the growing chorus on social media and offline platforms is advocating for a shift towards buying Indian-made products.
In response to the escalating tensions, Manish Chowdhary, co-founder of India’s Wow Skin Science, has called for a focus on supporting farmers and startups to make “Made in India” a global phenomenon. He highlighted the success of South Korea in promoting its food and beauty products on the global stage.
Rahm Shastry, CEO of India’s DriveU, echoed similar sentiments on LinkedIn, advocating for the development of homegrown platforms to rival the likes of Twitter, Google, YouTube, WhatsApp, and Facebook.
While Indian retail companies have posed stiff competition to foreign brands like Starbucks in the domestic market, the global expansion has proven to be a challenge. In contrast, Indian IT services firms like TCS and Infosys have established a strong presence in the global economy, providing software solutions to clients worldwide.
Prime Minister Modi recently made a plea for self-reliance, emphasizing the need to prioritize India’s requirements over global demands. This sentiment has resonated with many Indians, leading to a renewed focus on supporting local products and industries.
Despite the growing calls for a boycott of American brands, Tesla recently launched its second showroom in India, underscoring the complex relationship between the two countries. The Swadeshi Jagran Manch group, affiliated with Modi’s Bharatiya Janata Party, has organized public rallies urging people to boycott American brands as a show of nationalism and patriotism.
While the anti-American sentiment continues to simmer, some consumers like Rajat Gupta in Uttar Pradesh remain unfazed by the tariff protests. Enjoying his coffee at McDonald’s, Gupta emphasized that tariffs should not overshadow the enjoyment of simple pleasures like a cup of coffee.
As the debate over tariffs and nationalism unfolds, the future trajectory of American brands in India remains uncertain. The push for self-reliance and the promotion of Indian products may reshape the consumer landscape in the country, challenging the dominance of foreign brands in the market.