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We create more jobs than U.S: NASSCOM Chief

Monday, 03 January 2011, 01:58 Hrs   |    14 Comments
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We create more jobs than U.S: NASSCOM Chief
Washington: India is a net job creator for U.S. companies, not the other way around, Nasscom Chairman Som Mittal has said strongly refuting the public perception that outsourcing and free trade agreements are responsible for America's current economic woes.

"India is a net job creator for U.S. companies, not the other way around. The Indo-U.S. economic relationship benefits the American economy and its job market in many important and tangible ways," Mittal wrote in an opinion piece in the Seattle Times. The U.S. has emerged as a preferred destination for Indian investment. In fact, India now ranks second, behind the UAE, in the list of fastest-growing foreign investors in the U.S., he argued in his article.

Observing that India has never sought publicity for its commercial connections to the U.S., Mittal said India it has quietly become both a major investor in America and a significant destination for American goods and services.

"It has a rapidly growing population of consumers hungry for products of many kinds. And unlike other large economies that have been suffering through recessions in recent years, India has increased its total outward foreign direct investment and devoted an increasing share of that largesse to the American market in need of financial support," he said.

Referring to a recent study by Ernst & Young, which was commissioned by the Federation of Indian Chambers of Commerce & Industry, Mittal said it found that Indian companies have increased their investment in the U.S. by more than $20 billion over the past five years.

According to the study, those investments have supported the creation of more than 65,000 American jobs. The study also revealed another welcome trend: an increasing percentage of India's outward-directed investment is going to the U.S. In the past two fiscal years alone, roughly 20 percent of Indian companies acquisitions abroad were in the U.S., and that percentage is still rising, he said.

In fiscal 2009 and 2010, Indian companies made 536 foreign acquisitions and 105 of them were in the US.

During the June quarter of last year, Indian companies completed 101 outbound acquisitions of which nearly a quarter were American firms.

The companies that were purchased tended to be in the same industries that Americans fear are losing the highest number of jobs to India. According to the study, information technology was the fastest-growing area of outbound investment, followed by manufacturing and pharmaceuticals.
Source: PTI
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Reader's comments(14)
1: These companies are not investing money from their pockets. Most of it comes from the public or the banks where the public money is being managed. By investing in america they are america to create jobs on their soil. Unless there is no oppertunity for these companies to start the bussiness in India or if it is more proffitable that is significantly more to help our own finantial scene.
Posted by:. P. kamalkumar - 03 Jan, 2011
2: I don't agree with the article above. There are not many facts listed to prove that India is helping the U.S economy and creating jobs through it's investment and not the other way around. Just listing the overall investment through the years doesn't help at all. On the other hand I believe that a lot of investment and acquisitions from the Indian companies comes from the IT services companies who are infact creating some jobs in the U.S through these M&A where by the whole intention is to expand their operations further and strengthen relationships with the U.S clients for further Outsourcing.
Posted by:KSC - 03 Jan, 2011
3: Why don't India make its investment in its own conutry for its development.India is far behind in development compared to other countries like China .And worst situation is Below Poverty Line (BPL)poulation and Un-employement rate is increasing day by day.Considering these factors,Indian companies should see Investments in home country first befor going to U.S.
Posted by:manoj - 03 Jan, 2011
4:
corerct my friend.there is one India which has luxury and the other India is denied of basic facilities...two sides of one coin.Rural India shud Improve , only then India will grow as a country in one unit.
Stephen Replied to: manoj - 15 Jan, 2011
5:
Manoj, seems you and j123 are frogs in the well.
j124 Replied to: manoj - 03 Jan, 2011
6:
for ur kind info a lot of houses and buildings are build such that we dont have enough or to be perfectly said a proper land are to make a gud environment for a perfect company to be established as america had a lot of land under hold so its better to get a lot of gud environment there.............if u want bpl students to get employment first make them moralistic with gud culture then u gonna provide them gud education then they can have gud oppurtunities................. if u cant lent them a hand n just keep on saying to help bpl people u cant do any thing am sorry .................... if u want to do some thing for the country come in action............
siddhi Replied to: manoj - 03 Jan, 2011
7:
Yes, I agree with you..!
j123 Replied to: manoj - 03 Jan, 2011
8:
no it's not like that..!
g223 Replied to: j123 - 03 Jan, 2011
9: All this for the US economic growth or for Indian economic growth?
Posted by:shree nair shree - 03 Jan, 2011
10: How about Govt jobs?All full of corruption and you must have heard of PSC scam.How do you evaluate this?Taking into account of only the private sector or including the public sector.Outsourcing is the only sector we have more jobs?24x7 jobs are still in demand which is affecting the mental and physcial health of the young generation for which no Govt or company will pay.What do you think is the repercussion?
Posted by:shree nair shree - 03 Jan, 2011
11:
yess i do agree wd u........
absolutely correct..........
can any one pay for the mental and physical health of the youngsters...........
siddhi Replied to: shree nair shree - 03 Jan, 2011
12: I think there is some truth to this - with India's craving for all things in the West, we are definitely contributing to America's economy and creating jobs there as well!

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Posted by:jaya - 02 Jan, 2011
13:
These investments are mainly from the Private Sector. The private sector goes where money is and they give a damn about poverty or development of a country. Don't carry the impression that there is no poverty in the US. Read this "Poverty in the United States is cyclical in nature with roughly 13 to 17% of Americans living below the federal poverty line at any given point in time, and roughly 40% falling below the poverty line at some point within a 10-year time span." from the Wikipedia" What I have always seen as Indians is we always stress on our weakness and not on our strengths. Look at Europe. Situation there is worse than India, do anyone of us have any clue? Yet they still stand strong. We always talk of poverty, blame each other, govt. blah blah blah. Why don't we believe in ourselves? Why compare India to any other country. It should be a pride for Indians, going and investing in a foreign land (I take it that way)
RKS Replied to: jaya - 03 Jan, 2011
14:
Well said
snd Replied to: RKS - 03 Jan, 2011