Our Bureau

New Delhi, June 3

US companies have taken a long-term view of the market conditions in India, which has allowed them to focus on investing in infrastructure, establishing market presence and leveraging advantages in segments such as R&D, intellectual capital, exports hub and outsourcing, according to a recent study conducted by the Indian Brand Equity Foundation (IBEF). Hence, the US companies are increasingly looking at India for investment.

Confirming India's position as a low risk destination, the study that was based on a survey of 56 US companies, found that companies across different sectors have plans to enhance investments in the country, specially towards increasing capacity, getting into additional segments and increasing market share in the existing ones.

According to the study, the companies already outsourcing products and services to India are looking to either expand the services or increase the scope of the service. The study also adds, "companies currently not outsourcing to India are looking at ways to take advantage if this opportunity by considering different options like simple back office/shared service to fabrication and engineering."

The key advantages to these companies are India's democratic system of governance, strong economic environment, large domestic market, availability of resources and enabling environment. These companies are keen on investing in markets such as infrastructure, telecom, cement, toll roads, bridges manufacturing, technology, pharmaceutical and retailing.

(This article was published in the Business Line print edition dated June 4, 2005)
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