IBEF: June 17, 2020
Indian companies invested around US$ 22 billion worth of foreign direct investment (FDI) into the United States (US) and created 125,000 jobs covering all 50 states, Washington DC and Puerto Rico, according to Confederation of Indian Industry (CII).
According to the report titled ‘Indian Roots, American Soil’ which surveyed 155 Indian companies in the US, Texas came out as the top investment destination for Indian FDI, receiving US$ 9.5 billion, followed by New Jersey’s US$ 2.4 billion and US$ 1.8 billion in New York.
The survey included companies operating across a range of industries from pharmaceuticals and life sciences to telecommunications and manufacturing.
In Texas, around 17,578 jobs were created by Indian firms, followed by 8,271 jobs in California and 8,057 jobs in New Jersey.
The report added that though 20 US states received over US$ 100 million in investments from these 155 Indian firms, around 77 per cent of them intends to increase investments with 83 per cent stating they would hire more employees locally over the next five years.
“The survey results show that the US is a preferred investment destination for Indian companies which are contributing significantly to supporting local jobs. The results in the survey capture a snapshot in time, documenting tangible investments and direct jobs only, so I believe that the actual economic impact of Indian FDI in the US is much larger,” said Mr Chandrajit Banerjee, director general, CII.
Indian companies contributed US$ 175 million towards corporate social responsibility (CSR) and about US$ 900 million on research and development.
“The sixth edition of CII report, Indian Roots, American Soil highlights the significant investments made by Indian industry in the US, including in the area of research and development. The report draws attention to the contribution made by Indian companies to local communities through their CSR initiatives like supporting students, organizing special skill and training programmes,” said Mr Taranjit Sandhu, ambassador of India to the US, who attended the virtual launch of the survey.
Other attendant included US government officials like Ms Diane Farrell, acting deputy undersecretary for international administration, US department of commerce and Peter Haas, principal deputy assistant secretary, US department of state.
Executives of some of the surveyed Indian firms including Mr Inderpreet Sawhney, chief compliance officer at Infosys, Ms Sofia Mumtaz, president of Lupin North America, and Mr Laksh Vaaman Sehgal, vice chairman, Motherson Group.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.