155 Indian companies account for $22 billion FDI in US: CII survey

Topics CII | FDI | India FDI

The surveyed companies also said spent $175 million on corporate social responsibility (CSR) and $900 million on research and development
One hundred fifty-five Indian-origin companies have investments over $22 billion in the US and have created nearly 125,000 jobs, revealed a new survey by the Confederation of Indian Industry (CII).

Launched on Tuesday, the survey titled American Soil 2020 also points to Indian investments having crossed $100 million in 20 US states.

The CII survey also said over the next five years, 77 per cent of companies plan to beef up their investments in the US, while 83 per cent plan to hire more employees locally.

US President Donald Trump has repeatedly pushed foreign companies based in the US to hire more American workers instead of outsourcing jobs to cheaper economies.

The highest amount of foreign direct investment (FDI) by Indian companies headed to Texas — which commands a whopping 43.1 per cent of all investments — is at $9.5 billion. The other states that make up the top five investment destination for Indian firms are situated on the East Coast. These are New Jersey ($2.4 billion), New York ($1.8 billion), Florida ($915 million), and Massachusetts ($873 million). On the other hand, cumulative FDI from the US stands at $29.77 billion till March, according to government estimates.

“The results capture a snapshot in time, documenting tangible investments and direct jobs only. I believe the actual economic impact of Indian FDI in the US is much larger. It is critical that the US government continues to provide a supportive policy environment for Indian companies to flourish and enhance their operations in the US, especially to aid economic recovery at this time,” said Chandrajit Banerjee, director general, CII.

The surveyed companies also spent $175 million on corporate social responsibility and $900 million on research and development. “Now, as the world, and both India and America, grapples with coronavirus, we need to take this moment to re-dedicate to building good jobs for Americans, for Indians. We need to recommit ourselves to building stronger relationships between India and the US,” said US Senator Mark Warner, co-chair of the Senate India Caucus.

A caucus refers to a group of members of the US Congress that meets to pursue common legislative objectives. The Senate India Caucus is the largest bipartisan country-specific caucus at present. Warner had attended the online launch of the report along with other members of the US Congress belonging to both Houses as well as senior US government officials.

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