The release of a new study by the Confederation of Indian Industry (CII) of Indian companies in America turned out to be an occasion to shore up political support for continuing economic engagement between the two countries in a political climate of protectionism, on Tuesday, at the Capitol.
The study “Indian Roots, American Soil,” found that 100 Indian companies have created 1,13,423 jobs in the U.S with an investment of $17.9 billion, across all States. Several lawmakers who spoke at the event pledged their support for the India-U.S. partnership, acknowledging the contribution of Indian businesses to the American economy.
New Jersey, Texas, California, New York and Georgia are home to the most number of workers in America directly employed by Indian companies. New York, New Jersey, Massachusetts, California, and Wyoming have the highest foreign direct investment from Indian companies, the study found.
The fifth edition of the biennial study has political significance this year given the Donald Trump administration’s strong views on economic ties that displace American workers. Indian ambassador to the U.S., Navtej Sarna, noted that the report was being released a day after a meeting between Mr. Trump and Prime Minister Narendra Modi in Manila, Philippines. “The President and the Prime Minister have developed a strong personal relationship,” Mr. Sarna noted.“That Indian companies are spending significant amounts in America as part of their CSR initiatives is testimony to the fact they are deeply invested in this country and society,” he said.
Firms in the study spent $147 million in CSR and $588 million in R&D facilities in America. On average, each American state or territory received $187 million in investment by Indian firms. The study found 85% of the companies plan to make more investments and 87% of firms plan to hire more employees locally in the next five years.
Mr. Trump was lavish in his praise for India in his speeches during his East Asia tour. The President has mentioned trade issues with India in some speeches earlier, though he has not been as belligerent as he is with some other American partners on the issue. A White House official had accused several Indian tech companies, by name, of gaming the H-1B visa programme.
On Wednesday, a Congressional subcommittee is likely to vote on new legislation that proposes to raise wage requirements for guest workers and other restrictions. The debate on the issue could be occasion for another round of heated rhetoric on the H-1B visa programme, though the bill itself is unlikely to pass in the House of Representatives, if at all it reaches the voting stage.
It was against this background that around 20 members of Congress, came out strongly in support of Indian companies in America. Congressman David Brat, from Virginia said: “I am glad to see the principles of free market economics being celebrated today on Capitol Hill as we recognize the contributions Indian Industry have brought to the US economy and states.
Heads of several Indian companies also spoke at the event. Sofia Mumtaz, President, Lupin Pharmaceuticals said: “We are contributing to the U.S. economy while helping arrest soaring healthcare costs through innovative and high quality pharmaceutical products.”
