US owes economy growth to India | Latest News India - Hindustan Times
close_game
close_game

US owes economy growth to India

None | ByPress Trust of India, Washington
May 17, 2006 05:25 PM IST

Indian-owned firms in US rake in the most revenue, earning $3.8 billion.

Asian-owned businesses in the US have surged and boosted the country's economic growth with Indian-owned firms in US raking in the most revenue by earning $3.8 billion, according to a Census Bureau report.

HT Image
HT Image

The number of firms owned by ethnic Asians locally rose 30 per cent, to 40,152, during 1997-2002, double the national rate of growth for all businesses and more than the 24 per cent growth in Asian-owned firms nationwide, the report released yesterday said.

Hindustan Times - your fastest source for breaking news! Read now.

Asian-owned businesses accounted for more than $326 billion in revenue in 2002, an eight per cent increase from 1997.

The South Korean community had the largest number of businesses, with 9,406, while Indian-owned firms in Washington area pulled in the most revenue. The number of Indian-owned companies grew 46 per cent to 8,707, and they earned $3.8 billion, the Washington Post reported.

It was a trend driven by small-business aspirations, familial interests and larger global forces -- from the tech boom to the rise in government contracting and corporate outsourcing, it said.

"Asian businesses are different from other minorities in that they are using family connections and connections to their home countries to make these businesses work," said Ying Lowrey, a senior economist at the Small Business Administration.

"That kind of capital mobility within a global arena is important and has a positive impact on our economy."

The number of local Asian-owned firms grew more slowly than did the number of Hispanic- and black-owned businesses, which increased 50 percent to 28,936, and 38 per cent to 67,213, respectively, during the same period.

But the Asian-owned firms tended to bring in more revenue, as Indian and Korean entrepreneurs in particular, many concentrated in scientific and technical fields, benefited from a boom in technology and security spending.

During the period included in the recent report, the revenue of Asian-owned firms increased 36 per cent, to $10 billion.

Sudhakar Shenoy, president-elect of Indian entrepreneur association Tie-DC, said a number of Indian business owners have migrated to the Dulles corridor of Fairfax County because of the area's connection to the federal government.

Fairfax county had the largest number of Asian-owned businesses at 14,313, up 35 per cent from 1997 to 2002. The number of Asian-owned firms in Montgomery County rose 17 per cent to 10,819.

"So many Indian-owned high-tech companies have started getting 8(a) designations," Shenoy said, referring to the federal program that provides government contracts for minority-owned firms. "This has attracted highly educated and skilled Indian professionals, particularly in engineering."

Shenoy estimates that 80,000 people in the region are employed by Indian-owned firms. Tie-DC says it has 290 member companies that are Indian-owned. 

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On