Indian Companies Created 60,000 Jobs in the US
Date: Wednesday , June 30, 2010
Even though India has become synonymous with outsourcing, Indian companies have created an amazing number of job opportunities in the US. Through nearly 500 investment and acquisition deals worth $26.5 billion, Indian firms have created about 60,000 jobs in the US in the 2004-09 period.
A report, ‘How America Benefits from Economic Engagement with India’, released by the prominent Congressman Jim McDermott highlights that during 2004-2009, 90 Indian companies made 127 greenfield investments worth $5.5 billion, and 16,576 jobs created in the US greenfield investments were those that were made to start a new venture by constructing new operational facilities from the ground up. The top three destination states for greenfield investments were Minnesota, Virginia, and Texas, in that order.
The report, jointly produced by University of Maryland, India-US World Affairs Institute, and Federation of Indian Chambers of Commerce and Industry, gives a comprehensive analysis of America's economic engagement with India during the period. It comes on the heels of US President Barack Obama ending tax incentives to the US companies that move jobs outside the country.
The report focused on the specific aspect of globalization of the American economy, especially the US, India business relationship.
The investments mainly were in mining, manufacturing, and other industries, the report says. The top three states in terms of jobs created were Ohio, Texas, and California, the report says. IT services sector, which accounts for the bulk of the outsourcing deals, received less than 15 percent of the total investment.
During 2004-09, 239 Indian companies made 372 acquisitions in the United States. The five US industrial sectors that received the most greenfield investments were metals, software and IT services, leisure and entertainment, industrial machinery, equipment, and tools, and financial services, accounting for almost 80 percent of the total greenfield investments in the US.
A 2004 Goldman Sachs report had forecast that nearly six million US jobs would be shifted overseas to low-wage countries like India.