Indians invested over $22bn in states
Seventy-seven percent of the 155 companies with origins in India plans to make more investments in the United States, having already invested over US$22 billion, according to a survey.
Eighty-three percent of these Indian companies plan to hire more employees locally in the next five years, having already created 125,000 jobs in the U.S.
This was the finding of a survey, “Indian Roots, American Soil 2020”, by the Confederation of Indian Industry (CII) which released it on 16 June 2020.
The survey gives a state-by-state breakdown of tangible investments made and jobs created by the 155 companies doing business in all 50 states, as well as Washington, D.C., and Puerto Rico. Texas, California, New Jersey, New York, and Florida.
The companies disclosed the highest amounts of foreign direct investment (FDI) in Texas, New Jersey, New York, Florida, and Massachusetts. The states with the top concentrations of Indian companies reporting were New Jersey, Texas, California, New York, Illinois and Georgia.
Their corporate social responsibility (CSR) and research and development expenditures totaled US$175 million and US$900 million, respectively.
The top five states in which Indian companies have generated maximum employment are Texas (17,578 jobs), California (8,271 jobs), New Jersey (8,057 jobs), New York (6,175 jobs) and Florida (5,454 jobs).
The top five states in which Indian companies have contributed the highest foreign direct investment are Texas (US$9.5 billion), New Jersey (US$2.4 billion), New York (US$1.8 billion), Florida (US$915 million), and Massachusetts (US$873 million).
Indian investments in 20 U.S. states stand at over US$100 million each.
The CII survey respondents represent diverse sectors including pharmaceuticals and life sciences, telecommunications, aerospace and defense, financial services, manufacturing, tourism and hospitality, design and engineering, automotive, food and agriculture, energy and mining and materials.
The CII report was launched via a webinar by Chandrajit Banerjee, Director General, CII and Taranjit Sandhu, Ambassador of India to the United States, along with support from senior US Government officials, including Diane Farrell, Acting Deputy Under Secretary for International Administration, US Department of Commerce and Peter Haas, Principal Deputy Assistant Secretary, US Department of State.
Several members of Congress also joined the report launch over video, including Senators John Cornyn (R-TX) and Mark Warner (D-VA), co-chairs of the Senate India Caucus, as well as Representatives Brad Sherman (CA-30), co-chair of the House Caucus on India and Indian Americans, and Ami Bera (CA-07) who joined live.
A business panel moderated by Atul Deshmukh, Global Head of Assurance, KNAV, followed the report launch, in which business leaders – Inderpreet Sawhney, Group General Counsel and Chief Compliance Officer, Infosys Ltd, Dr Sofia Mumtaz, President, Lupin North America, and Laksh Vaaman Sehgal, Vice Chairman, Motherson Group highlighted the contributions of Indian companies to the U.S. economy in the form of FDI, jobs created and saved, research and development, skills training and local corporate social responsibility initiatives – including Indian companies’ support to the US in its fight against COVID-19.
Chandrajit Banerjee, Director General, CII: “As CII celebrates its 125th anniversary this year as well as 25 years of its US operations, the Indian Roots, American Soil 2020 report marks an important milestone, and is a testament to the robust economic partnership between India and the US.
“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.
“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.”
Kapil Sharma, Chair, CII India Business Forum USA and Vice President, Government and Public Affairs North America, Wipro, added, “This is an important initiative that brings together Indian industry with US Government officials and members of Congress, highlighting the increasing contributions of Indian companies’ investments and job creation across the United States, with a state by state analysis.
“In the current scenario, Indian companies in the US have demonstrated their values-based leadership, working to limit the spread of COVID-19, to protect the safety of its workers, and to help restart the US and Indian economies. Our companies are part of the solution for our two great economies to eventually return to normalcy.” fiinews.com
