Around 155 Indian companies accounted for over $22 billion in foreign direct investments and almost 125,000 jobs in the US, shows CII report, titled— Indian Roots, American Soil 2020— published on June 16
Indian companies are expanding their presence in US by making more investments, hiring more people and spending on research and development in the country.
Around 155 Indian companies accounted for over $22 billion in foreign direct investments and almost 125,000 jobs in the US, shows Confederation of Indian Industry (CII) report, titled— Indian Roots, American Soil 2020— published on June 16.
CII surveyed 155 Indian companies across multiple sectors. Out of which, 27.10% were from information technology and telecommunications; 24.52% from life sciences, pharmaceutical and healthcare; 19.35% from manufacturing and 10.32% from automotive.
The top five states in US where Indian companies have created most of the jobs include Texas (17,578), California (8,271), New Jersey (8,057), New York (6,175) and Florida (5,454).
The top five states where Indian companies made the highest foreign direct investment include Texas ($9.5 billion), New Jersey ($2.4 billion), New York ($1.8 billion), Florida ($915 million), and Massachusetts ($873 million).
These companies spend $175 million in corporate social responsibility (CSR) initiatives and $900 million in research and development.
A case in point is Lupin Pharmaceuticals, an Indian MNC in US, which donated 1,500,000 tablets of Hydroxychloroquine to HHS for research purposes, and thousands of N95 masks to hospitals and nursing homes in New York, New Jersey, Maryland and Florida. The company also provided 11.4 million doses of Azithromycin at cost to American patients.
To step up R&D efforts many Indian companies have opened new innovation centres in US. In 2017, Wipro opened multi-million dollar Silicon Valley Innovation Centre in Mountain View, California. In 2018, Infosys inaugurated its technology and innovation hub in Hartford, Connecticut.
“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. It is critical that the US Government continues to provide a supportive policy environment for Indian companies to flourish and enhance their operations in the US, especially to aid economic recovery at this time," Chandrajit Banerjee, Director General, CII said in a statement.
CII also found that 77% of them intend to make more investments and 83% plan on hiring more people in the next five years in US.
Though appreciative of the important role of Indian companies, US has been trying to generate more jobs for Americans by restricting immigration. Due to tightening the immigration norms, Indian immigration to US has also declined in the last few years. In April, US president Donald Trump signed an executive order suspending legal immigration in certain categories to US for 2 months.
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