The Hindu Business Line : US cos largest partners of India Inc: Report

American companies have emerged as India Inc's largest business partners, with the US receiving the highest amount of RBI-approved investment of $225 million between April 2005 and January 2006.

In the decade up to 2005, the US attracted the highest share of Indian direct investments approvals of $2,159 million, followed by Russia with $1,763 million.

Interestingly, Mauritius was third with $1,038 million approvals, according to a FICCI-Ernst & Young report.

The report on `Direct Investments in the United States of America by Indian Enterprise' noted that the software and BPO sector accounted for the largest share (58 per cent) in terms of the number of deals involving the US during 2004-06.

Healthcare comprising pharmaceuticals, biotech and healthcare services accounted for 17 per cent, while the remaining 25 per cent of deals were in sectors such as telecom, textile, automotive and financial services.

The report said that with high levels of technological expertise and knowledge, entrepreneurial development, management skills and infrastructure, Indian companies have truly come of age and are being viewed as competent business partners by their US counterparts.

The report added that Indian enterprises have contributed significantly to the US economy.

They are no longer just outsourcing partners; their presence in the US business community as competent business partners is increasingly becoming clear. Not only are Indian companies creating new jobs and boosting wages, investments from India are strengthening US manufacturing and contributing to rising productivity.

The key decision drivers for Indian enterprises investing in the US include access to foreign markets, production facilities and international brand names, according to the report.

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