According to Chandrajit Banerjee, director general, CII, the results capture a snapshot in time, so the actual economic impact of Indian FDI in the US is much larger
NEW DELHI :
Indian companies have increased investments, hiring and research and development expenses to expand their presence in the US.
As many as 155 Indian companies have invested more than $22 billion and created 125,000 jobs in the US since March 2019, according to a Confederation of Indian Industry (CII) report, Indian Roots, American Soil 2020, published on 16 June.
Of the companies surveyed by CII, 27.10% were information technology and telecommunication firms, 24.52% represented life sciences, pharmaceutical and healthcare, while 19.35% were manufacturing companies and 10.32% were from the automotive sector.
Texas was the biggest beneficiary in terms of jobs, with Indian firms hiring 17,578 people, while 8,271 and 8,057 employees were recruited in California and New Jersey, respectively, followed by New York (6,175) and Florida (5,454).
The top five states in terms of investments by these firms include Texas ($9.5 billion), New Jersey ($2.4 billion), New York ($1.8 billion), Florida ($915 million), and Massachusetts ($873 million).
CII said that the companies spend $175 million under corporate social responsibility initiatives and $900 million in research and development.
A case in point was Lupin, an Indian pharmaceutical MNC in the US, which donated 1.5 million hydroxychloroquine tablets to the department of health and human services for research, 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 research and development efforts, many Indian companies have also opened new innovation centres in the US. In September 2019, Infosys set up a technology and innovation centre in Arizona with special focus on autonomous technologies, Internet of Things (IoT), data science, full stack engineering and cybersecurity. It plans to hire 1,000 American workers in the state by 2023.
“The survey captures 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," said CII director general Chandrajit Banerjee.
CII also found that 77% of these companies intend to make more investments and 83% plan on hiring more in the US over the next five years.
Though appreciative of the important role of Indian companies, the US has been trying to generate more jobs for Americans by restricting immigration. Indian immigration to the US has also declined over the last few years because of tightening of immigration norms. In April, US President Donald Trump had signed an executive order suspending legal immigration in certain categories for two months.