How Americans Benefit By Bonding With India .. A True Story

India in past few years have grown exponentially with immense job opportunities both domestic & off-shore. The popular perception is that companies in India are taking jobs away from Americans but the numbers on the ground tell a different story.

Here are some facts that will show how US is benefiting from India as a whole.

# In the last five years alone, 90 Indian companies have created 16,576 jobs in the US by investing $5.5 billion in new companies and saved over 40,000 jobs by making 372 acquisitions and investing $21 billion (for 272 deals).

# Indian companies have been investing abroad, including in the US; with the rise of India Inc., the magnitude and impact of such investments have increased. Some Indian companies to which work was being outsourced earlier are now ‘insourcing’ such jobs within the US itself, using American workers to perform value-added work.

# More than two-thirds of the $5.5 billion of the greenfield investments in the US were made by 10 companies: Essar Steel, JSW Steel, TCS, Welspun Group, Reliance Adlabs, Indage Group, HCL, Flag Telecom, RIL, and Tata Communications. Over 40,000 jobs were created or saved by 85 acquisitions (data for which was available); the number of jobs saved for 372 transactions would be much higher.

Exports......

Between 2004 and 2009, US exports to India grew 269 per cent, while India’s exports to that country grew 136 per cent. US exports to India have grown faster than exports to all other countries. In 2009, India was United States’ 17th largest goods export market, and 15th largest supplier of goods imported into the US. Interestingly, in the 1700s, America traded more with India than with all of Europe combined.

The US exports high-tech products such as aircraft, electrical machinery, optic and surgical instruments, chemicals, plastics, pharmaceuticals, vehicles, and railway stock and traffic signal equipment. With the US-India civilian nuclear agreement, US exports to India are likely to grow even faster in the coming years, creating more jobs in the US.

Education is one of America’s finest exports. The foreign students who come for higher studies to the US not only bring talent, but also contribute to the US economy via tuition and living and other expenses. India has had the largest number of foreign students in the US among all countries of origin for eight years in a row. In 2008, there were 94,563 students from India, who contributed $2.39 billion to the US economy.

The other benefits of engaging with India include noble laureates like Har Gobind Khurana (Medicine, 1968), Amartya Sen (Economics, 1998), CEOs in several corporations like Indra Nooyi (PepsiCo), Vikram Pandit (Citigroup), educators like Pradeep Khosla (dean of engineering, Carnegie Mellon University), Nitin Nohria (dean, Harvard Business School), and journalists like Fareed Zakaria (editor, Newsweek), to name a few.

Hope the information was useful...