By Jashmin Tandukar

India, one of the fastest growing economies of the 21st century, is also known as a prime place for American companies to outsource. While there is much concern about American jobs being outsourced to India, there is a growing positivity about Indian investments in the United States. An article in the July 2013 The Economic Times stated that investment by Indian companies has totaled $11 billion USD and created more than 100,000 jobs, according to a report published on July, 2012 from US India Business Council. According to another report from the White House, Indian investments grew 53% annually in the decade leading to 2009. It states that in 2009, the total amount was $4.4 billion USD. So, since 2009, there seems to have been a tremendous increase in Indian investments in the United States.

There are a couple of major reasons for the growth in investments. One reason could be the decline of the Indian rupee against the U.S. dollar. Companies are looking to increase their dollar revenue to boost their earnings. Another reason could be the slow growth of the Indian economy along with high inflation rate. Because of this there is not much room for investing in India. Hence, Indian companies are looking for global opportunities including investing in the U.S. economy, which is in recover.

Major examples of growing Indian investments in the U.S. include:

1. Apr 2010 – RIL looks to ride Atlas to retail brand in US
2. June 2010 – CG and CNSE Launch Global Partnership to Establish $20M Center for Intelligent Power at UAlbany NanoCollege – 20 Million US $
3. Jan 2012 – Essar Americas to invest $1.6 billion for pellet plant in US – 1.6 Billion US $
4. June 2013 – Apollo Tyres to Acquire Cooper Tire and Rubber Company – 2.5 Billion US$
5. July 2013 – India’s Hero MotoCorp Buys 49.2% Stake In Erik Buell Racing (EBR) – 25 Million US$
6. Jan 2014 – TCS plans to hire over 2,000 in the US – Hiring 2,000 US Employees

A FICCI report provides a detailed analysis of the positive impact of direct investments of Indian companies in the United States from April 2008 – June 2010, including acquisitions of American companies by Indian companies.