'Indian companies contribute to the US economy'

By Ruchi Shrimali

Coming up with evidence that strengthening trade ties between India and the US is in the interest of both the companies, CII has reported that ‘Indian companies positively contribute to the US economy'. Amidst much hue and cry about India diverting jobs away from Americans, especially in the technology services sector, the 2012 Indian Business Forum (IBF) survey by CII contradicts the belief showcasing the economic and social contribution of Indian companies on American communities as significant.

The survey involved 36 Indian companies representing sectors across manufacturing, education, information technology, financial services, healthcare, pharmaceuticals and life sciences, media and telecommunications. Operating in 40 states and the District of Columbia, these companies have an average establishment age of about 18 years in the US market.

The report findings said that 70 per cent of these companies have augmented their staff strength since 2005, despite the US economic slump. Indian companies also initiated 72 mergers and acquisitions since 2005 to create and salvage thousands of existing jobs. 34% of these companies have invested more than $820 million to establish manufacturing facilities in the US. This year alone, the companies have projected to invest over $190 million in research and development.

About 65% Indian companies also take up Corporate Social Responsibility (CSR) initiatives, such as helping universities, community colleges and high schools to develop curriculum and promoting Science-Technology-Engineering-Mathematics (STEM) education. Read more

Thus, Indian companies have not only invested across states in the US, they have positively contributed to the fields of manufacturing, services, distribution, engagement with local communities, and employment creation in the country.

More than 20 American lawmakers were present at the CII event to release the report. Senator from Colorado, Mr Michael Bennett, advocated stronger commercial and strategic ties between US and India, tracing his connection with India as his birthplace. Congressman Mr Hansen Clarke too hoped that the ties will prove beneficial to people and economy of both the countries. He traced his connection with the sub-continent through a grandfather who had emigrated from Bangladesh to America. Details about American senators who believe in India

However, there are still a few US senators who keep asking companies to stop outsourcing IT and technical support work to India and to find options to keep jobs in the States. Know more

Do you think that it is fair for Americans to accept jobs in Indian companies and oppose outsourcing of certain operations to India? Let's discuss the issue here.