Indian Businesses Invested Over Rs. 97,000 Cr In US, Create 91,000 Jobs For Americans!
In a report named, “Indian roots, American soil”, the Confederation of Indian Industry (CII) and Grand Thornton (GT) brought to life some of the very inspiring data about the progress of Indian companies in the US and the role of Indian FDI in the US. According to their report, the US still attracts the largest FDI across the globe, China is investing in US at the fastest pace, while India stands at the fourth fastest foreign investing country in the US.
With 100 Indian American companies participating in the survey, they have invested a whopping $15.3 billion (Rs.97,139 crores) on tangible investment and have created more than 91,000 jobs helping to improve the US economy. The report points at the pivotal role these Indian companies are playing in job creation, acceleration of growth and exports in the US. Word has it that many of these Indian companies have aided the recession hit companies like Morton Grove. Wockhardt, a well-known pharma company in India, acquired Morton Grove for $37 million and preserved the existing 200 jobs that were to be terminated.
Coming back to the report, the top five beneficiaries of the highest Indian FDI (in billion) are:
Data Source: Grand Thornton / CII
Texas received the highest Indian FDI with 3.84 billion followed by Pennsylvania, Minnesota, New York and New Jersey, while the highest concentration of Indian companies is seen in New Jersey, California, New York, Pennsylvania and Illinois.
Also Indian companies have generated many jobs while the top five job creations happened in:
Data Source: Grand Thornton / CII
Looking at the destination of these FDIs, IT/Knowledge sector remains the most invested sector with 40% of the investments going into it. Followed by
- IT/Knowledge sector- 40%
- Life sciences, Pharma and health care- 14%
- Mining and Materials- 14%
- Financial services -6%
- Design and engineering- 5%
- Media and Entertainment- 5%
- Tourism and Hospitality- 2%
- Food and Agriculture- 2%
84.5% of the Indian companies plan to make more “long term investments” in the US and 90% of these companies plan to hire locally for their businesses in the next five years. The top 10 states and their statistics:
|Sl No.||Name of the State||Total Investment in billions ($)||Number of Indian companies present in the state||Total no. of jobs created|
As we can see, in terms of investment, Texas leads the FDI with $3.84 billion and when it comes to total number of companies and jobs created, New Jersey leads the others with 36 Indian companies creating 9,278 jobs.
During the release of the report, Congressman, Ami Bera was quoted saying, “As the only Indian American currently serving in Congress and co-chair of the Congressional Caucus on India and Indian Americans, I’ve seen first-hand the contributions the Indian American community has made to our country. I also believe that growing the economic partnership between India and the U.S. will benefit both economies and bring new jobs to Sacramento County. I’m proud to help advance the economic and political dialogue between India and the United States.”
The participating Indian companies include Bank of Baroda, Birlasoft, Cyient, Dr Reddy’s Laboratories, EsselPropack, Exim Bank, ICICI Bank, Infosys, ITC Infotech, Larsen & Tourbo, Mahindra USA, Mindteck, NIIT, Piramal Healthcare, State Bank of India, Sun Pharma, Taj Hotels and Resorts, TATA Communications, TATA Group, TATA Consultancy Services, Torrent Pharma, Wipro and Wockhardt.
Surely, Indo-American ties are creating a positive impact not only in India but also in the US. These statistics are certainly awe-inspiring and to see fellow Indians capitalize their luck in the land of opportunities is calls for July fourth every day. Three cheers to the NRI business community there!
Check out the entire report here.