When the average American thinks of India, perhaps the first thought that comes to mind is outsourcing! However, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the auditing firm Ernst & Young, India is creating and generating jobs in the United States too.
According to the report, in the FY06-07, direct investments from India to the US were more than $2 billion. US tops the list of Indian companies investing abroad. Conversely, investment in India by US companies, over the last 16 years has been only $6 billion.
The US is the largest investor in India in terms of FDI approvals, actual inflows and portfolio investment and as the Indian economy booms India''s investment in the US is picking up too.
There is a feeling in the United States that jobs are being lost to India. People don''t recogonise that there is globalization and global competitiveness. On the other hand that is what is leading to Indian investment in the United States, said Kamal Nath, Commerce & Industry Minister.
In fact, according to the report the trend of outsourcing is also one of the reasons behind this phenomenon.
While BPO work has demonstrated to US firms that India is a reliable source of low cost yet high quality products and services, it has also led to Indian companies having greater power to raise money in US capital markets as investors have grown more familiar with businesses in India.
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