Investments move from pure IT sector to other sector and possibility of more investment is coming
A diversified investment of $ 15 billion by major Indian companies has resulted in the creation of more than 90,000 jobs in the US. Ninety per cent of the companies plan to hire more employees locally in the next five years.
In a report “Indian Roots, American Soil”, by the Confederation of Indian Industry (CII) and Grant Thornton (GT), it was revealed that sizeable investment (40 per cent) went to the IT and related sector. However, there has been shift in investments with a significant number of companies in the life sciences (14 per cent), manufacturing (14 per cent) and automotive (four per cent) sectors across 35 American States.
According to the report, the top five states where the Indian companies have generated maximum employment are New Jersey (9300 jobs), California (8400), Texas (6,200), Illinois (4,800) and New York (4,100). In terms of quantum of investments, the southern State of Texas received the maximum foreign investment ($ 3.84 billion) followed by Pennsylvania ($ 3.56 billion), Minnesota ($1.8 billion), New York ($ 1.01 billion) and New Jersey ($ 1 billion).
According to the report 84.5 per cent of the companies plan to make more investments in the United States.
More than 20 top lawmakers including Senators, John Cornyn and Mark Warner, attended the report release at the Capitol Hill.
“As India surges forward to become the fourth fastest growing source of FDI into the US, it is critical that we recognise the positive impact of Indian business investments in the country,” said Senator Warner, co-chair of the Senate India Caucus.
The CII study draws attention to the growing contribution and influence of the Indian industry, which forms an important component of our growing and vibrant relationship with the United States, said.
“Today Indian companies are not just investing and creating jobs, they have also become significant stakeholders in the growth and prosperity of their local communities,” said Indian Ambassador to the US, Arun K Singh.
The US-India relationship is in many ways best exemplified through these Indian companies in America that have Indian roots, but are completely enmeshed into US soil, said Sumit Mazumder, CII president.
Major investments in energy, including conventional sources such as oil and gas, as well as renewable enegy, have also contributed to the increasing diversity of Indian companies’ operations in the US.
Indian companies have also made investment in the tourism and hospitality, food and agriculture, as well as in the media and entertainment sectors.
“India is now the fourth fastest growing source of investments into America. This is a very critical aspect of the burgeoning bilateral US-India business story and one that has an immediate and visible positive impact on the local communities where these companies operate. It’s a story that needs to be told and re-told,” said Chandrajit Banerjee, CII director general.