Indian Industries Are Making Their Way in the US FDI
Both India and the US are recovering from the economic downturns, following which Indian businesses have made a distinct way into the US State, strengthening the global partnership between both nations.
With the advent of the pandemic, extremes were noticed globally, especially the critical fall of the US gross domestic product (GDP) by 8.9 percent. It has led to the largest single-quarter contraction since the Great Depression. Similarly, India faced a major drop in GDP, leading to contractions in the previous fiscal years.
Wherein, the US economy is recovering at a steady pace crossing almost 2.7 percent, and is anticipated to soar furthermore in the future. Likewise, India is also bouncing back with resilience in the economy, outpacing the global space by nearly 6.2 percent.
President Biden and Indian Prime Minister Narendra Modi are prioritizing strengthening the US-India Comprehensive Global Strategic Partnership since the commencement of Biden’s administration. It aims at accelerating US economic recovery, and thereby, strengthening its presence in the Indo-Pacific region, in addition to enhancing trade and investment ties between both nations.
President Biden has launched critical platforms to increase collaborations like the US-India Initiative on Critical and Emerging Technology (iCET) and the Indo-Pacific Economic Framework for Prosperity (IPEF). The India-US CEO Forum serves as a critical testament to strengthening the bilateral economic ties between both nations.
Trade between the nations has reached great heights in recent times, inconsiderate of the global economic downturn, and is highly anticipated to expand in the future. As a result, the India-US trade value has already surpassed 191 billion USD. The former has emerged as the ninth largest trade partner of the US in recent times, surpassing a trade deficit of 45.5 billion USD.
Similarly, the US has emerged as the third largest investor in India with nearly 59.1 billion USD of foreign direct investments (FDI) in the current scenario. Indian companies have raised a formidable value in tangible investments in recent times and thus, are cultivating effective opportunities for Indian investments and job creation in the US region.
An initiative by the Confederation of Indian Industry (CII), the Indian Roots, American Soil, highlights Indian businesses with increased investments and operations in the US space. It measures and tracks the reach and impact of Indian FDI on varied aspects and levels of the US economy.
Indian businesses are spread across nearly 50 US states, favoring over 40 billion USD in tangible investments. Considering the top states with Indian companies, the FDI has elucidated the value of Indian companies in Texas, Georgia, New Jersey, New York, Massachusetts, Kentucky, California, Maryland, Florida, and Indiana, raising to nearly 100 billion.
Indian businesses, in addition to their contribution to the US markets, are ranking their perceptions of states’ business-friendly environments for efficient progress of policy efforts, thereby enhancing India-US economic partnership.