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Indians founded one-fourth foreign IT firms in U.S.

By SiliconIndia | Sunday, 15 February 2009, 22:31 Hrs | 9 Comments

Indians founded one-fourth foreign IT firms in U.S.

New York: Indian entrepreneurs have made the U.S. their home to carry businesses in a disciplined and profitable way and are presently making valuable contribution to the U.S. economy especially in terms of creating jobs. A new study shows that every fourth engineering and technology company in the U.S. has an immigrant among its founders.

Further, India tops among the technology and engineering companies started by immigrants in the U.S. between 1995 and 2005. Almost 26 percent of all immigrant-founded companies in last 10 years were founded by Indian immigrants, according to a study by professors in Duke University and the University of California.

The study on 'America's New Immigrant Entrepreneurs' shows that there was at least one immigrant founder in 25.3 percent of all engineering and technology companies established in the U.S. between 1995 and 2005 inclusive. These entities generated over 52 billion dollars in 2005 sales, while creating just under 4, 50,000 jobs as of 2005.

Indian immigrants are followed by those from the UK, China and Taiwan. "Immigrants from the UK, China, and Taiwan contributed to 7.1 percent, 6.9 percent and 5.8 percent of all immigrant- founded businesses, respectively," the report said.

According to a new U.S. congress proposal the firms who receive the government's bailout package, are restricted from hiring H1-B visaholders, if they are to replace Americans. The latest measure, which is part of the American Recovery and Reinvestment Act, also known as stimulus bill, could adversely impact Indians as they make up a major chunk of the H1-B visaholders.

Of more than 1, 60, 000 H1-B visa applications for the fiscal 2009, one lakh are estimated to be Indians. Currently, the U.S. has capped the annual H1-B visa quota at 65,000, which was reduced from 1, 95, 000 two years ago.

Estimates suggest that about 40,000-45,000 Indians are getting these skilled worker visas currently, down from more than one lakh a year previously.

As per the report, 46 percent of Indian immigrants founded software firms, while 44 percent started companies in innovation or manufacturing-related services. Interestingly, Indians mostly found technology and engineering firms in California.

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Reader's comments(9)

1: India will never achieve greatness. Even in the US people socialize based on who is North Indian or South Indian. Unless we dramatically change our thinking we are doomed to be a mediocre country

Posted by:San - 16 Feb, 2009

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2: Man, you send your servant in your house to America, and he will come back better than you are in India!

Posted by:Ved from Victoria Institutions - 16 Feb, 2009

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3: the cos' in usa consider indians as skilled labors but they hav all those institutions like MIT, Stanford, etc...
The bar on H1B is sought because they consider that the bailout money, constituted by the tax paid by US citizens should not harm themselves while an indian replaces them at work. But the truth is indians pay more tax to them.

Posted by:Babu C K - 16 Feb, 2009

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4: U.S is witnessing a boom in Indian community which are in the helm of affairs. The growth is similar to that of Jews who dominates the powers in U.S. It would be great if Indians can be in power with Jews in U.S which would force U.S. to consider Indians on policy views in the future

Posted by:John - 15 Feb, 2009

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5: The actual price of diamond is not in it's mine, not in jhoris. it's actual price is in the the market and US is the market where Indian diamonds gets it's shine.

Posted by:vipul.bhaskar - 15 Feb, 2009

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6: It is very difficult in India to Start a descent Business.

Posted by:Amrut Ranjan - 15 Feb, 2009

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7: Just imagine if these very people start giving back to their Homeland by setting up similar setups in India.....

Posted by:rahul vyas - 15 Feb, 2009

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8: Indians play a big role in strengthening the U.S. economy both as entrepreneurs and as employees. so i would suggest U.S government to clarify all the concerns regarding with H1B visas.

Posted by:Nachus - 15 Feb, 2009

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9: If all the indians come out, the country's current position as world leader will wither in no time

Posted by:sanjay - 15 Feb, 2009

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