Indian FDI of over $40 billion created 425,000 jobs in United States: CII

May 04, 2023 08:38 AM IST

There remains a disjunction between official figures available from the US administration on Indian investment ($14 billion creating 72,000 jobs) and the CII’s on-the-ground survey, which is arguably a more accurate estimation

In a sign of the growing global reach of the Indian capital, Indian companies have invested over $40 billion in the United States (US) and created over 425,000 direct jobs, according to the latest edition of the Confederation of Indian Industries (CII) report on the Indian industry’s footprint in the US titled Indian Roots, American Soil.

The report was released at the residence of Indian ambassador to the US Taranjit Singh Sandhu. (Twitter)
The report was released at the residence of Indian ambassador to the US Taranjit Singh Sandhu. (Twitter)

According to the report, based on data provided by 163 companies that participated in the survey, Indian foreign direct investment (FDI) is present in all 50 American states. The highest Indian investment, in terms of value, is in Texas followed by Georgia, New Jersey, New York, and Massachusetts.

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In terms of job creation, while Indian companies have generated close to 35,000 American jobs through remote work, among states, the maximum job creation has happened in Texas (20,906), New York (19,162), New Jersey (17,713) and Washington (14,525) as of 2022.

The report was released on Wednesday evening at India House, the residence of the Indian ambassador to the US, Taranjit Singh Sandhu during an event that celebrated over 220 Indian companies participating in Select USA, the flagship investment summit organised by the US commerce department. India sent the largest delegation of any country to the summit this year.

The US ambassador-designate to India, Eric Garcetti, was also present at the event. Garcetti is expected to present his credentials to President Draupadi Murmu next week. The governors of North Carolina, Guam, and the Commonwealth of the North Mariana Islands — the last two are US territories in the Pacific — sought greater Indian investment, while senior officials of the US commerce department hailed the India-US commercial partnership.

However, there remains a disjunction between official figures available from the US administration on Indian investment — which is estimated at $14 billion creating 72,000 jobs — and the CII’s on-the-ground survey — which is arguably a more accurate estimation. Since the CII survey does not cover all Indian investments, and is based on participation by companies, Indian FDI could even be higher than $40 billion.

The last edition of the CII report, published in 2020, showed 155 Indian companies had invested $22 billion and created 125,000 jobs in the US. The latest report shows a significant spike in Indian investment. Among other reasons, this has helped make India politically more attractive to different states, their political leaders, as well as Senators and House representatives.

The 2023 report also shows that 29% of Indian investments in the US are in the life sciences, pharmaceutical, and healthcare sectors. 21% of companies are in the information technology and telecommunications sector, 18% in manufacturing, 10% in financial, legal, logistical, and design services, five percent in automotive, four percent in food and agriculture, three percent in tourism and hospitality, and two percent in energy.

Indian companies have also invested over a billion dollars in research and development (R&D) and have spent close to $195 million on corporate social responsibility. In the survey, 83% of the companies said they plan to increase their investment in the US in the next five years while 85% of the companies said they intend to hire employees.

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    Prashant Jha is the Washington DC-based US correspondent of Hindustan Times. He is also the editor of HT Premium. Jha has earlier served as editor-views and national political editor/bureau chief of the paper. He is the author of How the BJP Wins: Inside India's Greatest Election Machine and Battles of the New Republic: A Contemporary History of Nepal.

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