Promising future for Indian FDI in the US
India seems to be riding on the back of growth and development as it secures its position among the top 10 rapidly emerging FDI investment sources in the US. Indian companies in the US are high on the hog, as they make a significant contribution in crafting a strong economy and society. However, such contribution by Indian firms often goes unnoticed in the US.
According to market sources, Indian investments in the US stood to a whopping amount of USD 9 billion in the last financial year. In 2011, Indian FDIs in the US have been reported to surpass the USD 7 billion mark. In the interim, US FDI in India in 2011 accounted for USD 28.38 billion, which is a steep rise from USD 24.66 billion. Financial experts further confirm that US has set a benchmark of USD 300 million FDI every year to kick-start its sluggish economy.
Sectors attracting investments
Indian FDI in the US is mainly focused on few sectors that crop lucrative returns, some of which include retail, renewable energy, agriculture, education and skills development, defence co-operation, clean technologies, infrastructure development and many more. Huge benefits are expected to derive from such sector-based investments by coming into terms with SMEs( small and medium enterprises).
Survey reports by CII further corroborate the fact that around 68 Indian firms in the US have made it public that they have invested nearly USD 17 billion in the United States and have successfully generated more than 81000 jobs. Around ⅓ firms in the US, who truck with Research and Development activity, have poured in nearly USD 340 million to spur innovation.
Why invest in the US?
The US has been gearing for an upswing for quite sometime now and increasing Indian FDI in the nation has offered it the perfect dias. The recent upturn of its economy is definitely a welcome sign for Indian firms, willing to diverge funds in the US market and for Indian export to gain momentum and get back on track.
The policy side in India, will also be on the receiver’s end. The Indian Government’s initiative to begin with FDI in different sectors, comprising multi-brand retail, will enable the foreign universities to open up their campus and turn the wheel independently in India.
