100 Indian companies invest USD 15 bn in US, create 91k jobs
Washington: A total of one hundred major Indian companies created more than 91,000 jobs in the US by investing USD 15 billion in a wide range of sectors across 35 American States, according to a latest report.
The southern State of Texas received the maximum (USD 3.84 billion) foreign investment from Indian companies followed by Pennsylvania (USD 3.56 billion), Minnesota (USD 1.8 billion), New York (USD 1.01 billion) and New Jersey (USD 1 billion), said the report titled "Indian Roots, American Soil" by the Confederation of Indian Industry (CII) and Grant Thornton (GT).
More than 20 top lawmakers including Senators, John Cornyn and Mark Warner, attended the report released yesterday 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.
A cornerstone of relations between India and US is the thriving commercial exchange between the countries, Warner said. 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).
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 Indian Ambassador to the US Arun K Singh. "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," Singh said.
Though Indian companies have made tangible investments in 35 US States, they are have physical presence in all the 50 US States, the report said, adding that the average amount of investment received from Indian companies per state was USD 443 million. "The friendship between the United States and India has grown stronger over the past year.
And both our nations are better for it," said Congressman George Holding, Co-Chair of the Congressional Caucus on India and Indian Americans. According to the report 84.5 per cent of the companies plan to make more investments in the United States. Ninety per cent of the companies plan to hire more employees locally in the next five years.
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. According to the report, sizeable investment (40 per cent) is in the IT and related sector, but the emergence of a significant number of companies in the life sciences (14 per cent), manufacturing (14 per cent) and automotive (four per cent) sectors is a remarkable development as a major contributor to job creation.
Major investments in energy, including conventional sources such as oil and gas, as well as renewables, 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.
Congressman Bera, Co-Chair of Congressional Caucus on Indian and Indian Americans, said the growing the economic partnership between India and the US will benefit both economies and bring new jobs to his Sacramento County in California.