Indian Industry Strives to Shake Off ‘Offshore Center’ Tag as it Asserts Greater Power in U.S. Economy

The Indian government may be pushing for a manufacturing surge in India, but Indian companies are busy generating employment in the States. A recent report has revealed that Indian companies generate more than 91,000 jobs in the U.S., with total investment from Indian companies reaching US$15 billion. The new report, released by the Confederation of Indian Industry and Grant Thornton, has been hailed by all parties concerned as confirmation of the positive results of the growing economic collaboration between India and the U.S.

The rapidly growing activity of Indian companies in the U.S. is uniformly spread across the U.S. While at least one Indian company has a physical presence in all 50 American states, 35 states have tangible investment by Indian companies. This translates to a massive US$433 million investment from Indian companies per American state, helping India become the fourth fastest growing source of FDI into the U.S. economy.

Texas, New Jersey Benefit the Most from Indian Companies

Investment from Indian companies is also quite diverse when it comes to geography and industry verticals. Minnesota, Pennsylvania, New York, New Jersey, and Texas all receive more than US$1 billion in FDI from Indian companies, with Texas topping the list with US$3.84 billion. Texas also features high in the list of states in which Indian companies create the most job opportunities, with New Jersey, Illinois, New York, and California joining the Lone Star State. New Jersey tops the latter list with 9,300 jobs.

In line with the growth of the IT sector in India over the last decade, the industry topped investment by Indian companies in the U.S. 40 companies surveyed in the report operated in this sector, followed by 14 companies in life sciences and healthcare, and 14 in mining, materials, and manufacturing.

Outsourcing … to the States!

Leading Indian automaker Mahindra & Mahindra recently announced its plans to outsource some of its engineering and development work to Motor City Detroit. The upcoming facility is notable in that Mahindra & Mahindra currently has no sales channels in the U.S.,even though it is in the running to land a contract to supply commercial vehicles to the U.S. post service.Its intentions to start the new facility signal an interesting reversal of roles: an Indian firm outsourcing to the U.S., driving crucial FDI into the U.S. economy and creating job opportunities.

This is set to be a growing trend in the U.S. economy, with the lack of skilled laborers in India encouraging many companies to outsource their operations to the U.S. 84 Indian companies in the U.S. stated their plans to increase investment in their U.S. operations in the coming years, while 90 plan to hire more locals. This holds great promise for the contribution of Indian companies to the America economy in the coming years, considering their potential for job generation has grown by 10,000 over the last two years.


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