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A hundred Indian companies employed 91,000 people and had invested $15 billion across the United States as of 2014, according to a report issued on Wednesday by the Confederation of Indian Industry (CII) and Grant Thornton, an independent audit, tax and advisory firm. Most companies are also gung-ho over further investments and hiring more hands in the US.
The report came as immigration and visa issues keep dogging Indian business interests in that country. Last month, the US labour department had launched investigations into possible visa rule violations against India's top two information technology (IT) services companies, Tata Consultancy Services and Infosys.
Based on a survey of 100 Indian companies, the report in its fourth annual edition provides the amounts of tangible foreign direct investments, employment generation, future expansion plan, etc, by such companies in 2014.
The study shows states having historically large populations of Indian-Americans, such as those on the eastern coast like New York, New Jersey and Pennsylvania, as well as California and Texas, lead. It maintains that Indian companies have operational presence in all 50 states and the federal capital, pointing to growing Indian presence Montana, Colorado and Kansas.
Together, the 100 Indian companies have made tangible investments in excess of $15 billion in 35 states. About half of these states have received over $100 million each in collective investment from Indian companies. The states that received more than $1 billion from Indian companies include Texas ($3.85 billion), Pennsylvania ($3.56 billion), Minnesota ($1.8 billion), New York ($1.01 billion) and New Jersey ($1 billion).
The earlier survey in 2013 had shown collective investments amounting to $17 billion and the total number of jobs created at 81,000. However, the sample size had been different, with 68 companies having been surveyed.
According to Reserve Bank of India data, the US features among the top five destinations for foreign direct investment from India. Corroborating this, 84 per cent of Indian companies responding to the survey indicated plans for more investment in the country over the next five years, while 90 per cent planned on hiring more employees locally over the period.
A state-by-state breakdown showed the concentration of Indian companies to be highest in New Jersey (9.278 jobs), California (8.937 jobs), Texas (6,230 jobs), Illinois (4,779 jobs) and New York (4,134 jobs) all of which have historically been home to most Indian-Americans.
The report is upbeat in its growth forecast for Indian companies with 84.5 per cent of companies planning to invest more. The report also points out rising sectoral diversification although the IT and IT-enabled sectors still dominate with 40 per cent of surveyed companies working in the fields. Other industries like life sciences, pharmaceuticals, mining, design, engineering and construction are also growing.
The report suggests the emergence of a significant number of companies in life sciences, manufacturing and automotive sectors to be major contributors to job creation. It adds that more companies operating in financial services space is indicative of surging demand from the large and economically strong Indian diaspora.
