Re: Detective Colombo asks
"While most startup investors are in the US, they actually invest all around the globe (even in India)."
They are, but not always at the same level. Pitching a startup to investors often involves a lot of completely subjective marketing to specific investors, who don't go on tour. That makes it easier for people who either live close to the investors or can easily afford to go visit them rather than those who only do a few online meetings. Investors will lend to people in a variety of countries, but not equally. In addition, I did say that there are other factors, and some of them affect investors' willingness to invest in India-based companies. Trade restrictions, worries about local economic conditions, and concerns about local markets (which you also mentioned, so I'll come to that) are considered by investors and all involve the location.
"Hardly any consumer facing business today is located where its customers are, unless it's a services business."
A lot of large tech companies are services businesses, and they tend to offer their service first in the country in which they're formed and expand from there. That's also true with B2B services, although there are some which wouldn't necessarily work as clearly. Even for goods, although they can be designed and manufactured basically anywhere, they are often sold first in a country in which the company has built a local presence, either their original one or a developed subsidiary which is responsible for marketing, distribution, and support including repairs.
"As with consumer products, R&D is usually located where the talent is, not the company's customers."
I must disagree with the first part of that. R&D tends to be wherever the company wants it to be, which for old and large companies is likely to be wherever they already had it. Apple, for example, does R&D in a number of places, but it still brings a lot of people to Cupertino because that's where they have been working for a long time and they've gotten used to putting stuff there. Several large companies have R&D centers in India, for example, Google has four of them, the largest of which is a facility in Hyderabad which is supposed to hold about 13,000 people. Other companies may just prefer to move their engineers to the place they already did it, and the engineers may also appreciate that.