A finding by one of America's top consulting firm says that India's small entrepreneurs are creating more jobs in the U.S. It can embarrass senator Barack Obama on the most crucial day of his political career as he used to verbally attack Indian firms by saying that they are sucking up U.S. jobs, reported The Economic Times.

"Our estimate is that in 2007 alone, Indian firms, which set up shop in the U.S. through greenfield units or acquisitions, created nothing less than around 65,000 jobs," says Dr Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) for whom Ernst & Young (E&Y) conducted the study called Report on Direct Investments in the U.S. by Indian Enterprises.

The E&Y report found that of 46 companies that went to the U.S. in 2007, 33 are categorized under SMEs and mid-caps. Of another 14 firms that invested in the U.S. until March this year, over 50 percent belongs to SME and mid-cap category. Mitra says, "SMEs alone have created over 35,000 jobs in the U.S. over the past year. It is also important to note that Indian firms are acquiring and reviving companies that were either closed already or are facing closure."

India has invested in the U.S. three times more than the latter has in India in the indirect investment segment as well.

In all the global mergers and acquisitions that were concluded, Indian SMEs added strategically significant portion of them. Of the 86 M&As in 2007, 33 were by SMEs. The M&As were valued at $4.3 billion in 2005, crossed the $15-million mark in 2006 and in 2007 breached the $35-billion level, the E&Y study says. According to Ficci officials, there are around 80 Indian SMEs and mid-caps, which have a presence in the U.S. and all of them are generating employment there.

"Around 60 percent of the companies generating employment and investing in the U.S. are SMEs," adds Mitra.