India Inc emerging business partner for US
No longer just outsourcing partners, Indian firms are playing an important role in the US economy, says a study.india Updated: Sep 10, 2006 14:46 IST
Indian companies seem to be bullish on investing in the US with the regulatory authorities approving direct investments worth $225 million in the April 2005 to January 2006 period, a survey said.
Majority of the Indian investments abroad are in the US and home-grown companies have invested close to $2,159 million in the last decade, followed by Russia with investments to the tune of $1,763 million, Mauritius $1,038 million and Sudan $964 million, according to a survey conducted by Industry body Ficci and Ernst and Young.
The survey said that the Indian regulatory authorities are no different to the trend and give maximum approvals for investments in the US, the survey said.
Indian companies are investing in wide-ranging sectors including IT, healthcare, telecom, textiles, automotive and financial services among others.
In the 2004-06 period, software and BPO sector accounted for maximum, 58 per cent investments, followed by healthcare (comprising pharmaceuticals, biotech and healthcare services) which accounted for 17 per cent while the remaining 25 per cent of the investments were absorbed in sectors like telecom, textile, automotive and financial services.
The survey said that India Inc has contributed significantly to the US economy and Indian companies are no longer just outsourcing partners but their presence in the US is as competent business partners.
Indian companies are assisting in enhancing the productivity, managerial talents and bailing-out bankrupt US companies, it added.
The survey said that Indian investments and acquisitions in the US are likely to increase further with the government adopting a liberalised regime.
The next phase of investments is expected to be driven by the pharmaceutical sector due to the regulated developed economies of Europe and US becoming key markets for most Indian companies, with increasing generics opportunity in these markets, it added.
First Published: Sep 10, 2006 09:34 IST