File photo of CEO and MD of Tata Consultancy Services N. Chandrasekaran, as he announces the financial results of the company for the year ended March 31, in Mumbai, April 18, 2016. India’s biggest IT outsourcing firm Tata Consultancy Services (TCS) said it will challenge the $940 million in damages imposed by a U.S. court in an intellectual property theft case. A federal grand jury in the U.S. state of Wisconsin found TCS and its American unit guilty of using data from a U.S. medical software firm without permission, according to Indian media reports. (Indranil Mukherjee/AFP/Getty Images)
Indian companies have created more than 113,000 jobs in the U.S. and invested nearly $18 billion in the country, according to a CII report, writes Lalit K Jha.
The report titled ‘Indian Roots, American Soil,’ which was released by Confederation of Indian Industry, Nov. 14, states that Indian companies have also contributed $147 million towards corporate social responsibility and $588 million as research and development expenditures in the U.S.
The annual report gives state-by-state breakdown of the tangible investments made and jobs created by 100 Indian firms doing business in America and Puerto Rico, a Caribbean island and unincorporated U.S. territory.
Together, 100 Indian companies employ 113,423 people across 50 states, the District of Columbia and Puerto Rico, the report said, adding that the total value of tangible investments made by these companies exceeds $17.9 billion.
The top five states in which Indian companies have generated maximum employment are New Jersey (8,572 jobs), Texas (7,271 jobs), California (6,749 jobs), New York (5,135 jobs) and Georgia (4,554 jobs).
According to the report, the top five states in which Indian companies have contributed the highest foreign direct investment are New York ($1.57 billion), New Jersey ($1.56 billion), Massachusetts ($931 million), California ($542 million) and Wyoming ($435 million).
The average amount of investment received from Indian companies per state/territory is $187 million, the report said, noting that 85 percent of the companies plan to make more investments in the U.S.
As many as 87 percent of the companies plan to hire more employees locally in the next five years.
Indian industry and professionals are making significant contributions to the U.S. economy, said Indian Ambassador to the U.S. Navtej Sarna.
“The presence and reach of Indian companies continue to grow each year as they invest billions of dollars and create jobs across the United States,” he said.
Chandrajit Banerjee, CII director general, said the story of Indian investment in the U.S. is one that showcases how intertwined the two countries are that contribute to each other’s success.
Indian firms are among the fastest growing investors in the U.S., contributing to growth and job creation in the U.S. economy, said Senator Chris Van Hollen.
As the world’s oldest democracy and the world’s largest democracy, a strong U.S.-India partnership is vital for the 21st century, said Congressman Ami Bera.
The friendship between the U.S. and India has continued to grow under President Trump’s administration, said Congressman Pete Sessions.
Indian businesses have brought hundreds of millions of dollars and thousands of jobs to Texas and, at the same time, the reforms led by Prime Minister Modi have opened doors for American companies to expand their operations in India, he said.
In addition to spurring economic activity, particularly in North Carolina, this type of investment serves to strengthen the bond between our two countries, said Congressman George Holding.
The report shows that Indian companies have invested over $195 million in the state of Illinois, and created over 3,800 jobs, said Congressman Raja Krishnamoorthi.
“I hope that Indian companies continue to put down roots and invest in our state, as our economy and community are strengthened by their engagement with us,” he said.
“As the largest India-headquartered multinational in North America, the Tata Group has had operations and investments in the U.S. market for many decades,” said James Shapiro, resident director North America of Tata Sons Ltd.