India Inc plumps for US Cos; Software sector corners big chunk
New Delhi, Sep 10 (UNI) American companies have emerged as India Inc's largest business partners, with the US receiving the highest amount of RBI-approved investment at 225 million dollars between April' 05 and January'06.
The software/BPO sector accounted for the largest share of 58 per cent, in terms of the number of deals into the US, during 2004-06, a FICCI-Ernst&Young report on 'Direct Investments in the US by Indian Enterprise' says.
The healthcare sector -- comprising pharmaceuticals, biotech and healthcare services-- accounted for 17 per cent while the remaining 25 per cent deals were in other sectors such as telecom, textile, automotive and financial services.
In the decade upto 2005, the US attracted the highest share of Indian direct investments of 2,159 million dollars followed by Russia at 1,763 million dollars, Mauritius at 1,038 million dollars and Sudan at 964 million dollars, the report says.
It observes that Indian enterprises contributed significantly to the US economy. ''They are no longer just outsourcing partners but their presence in the US business community as competent business partners is increasingly becoming clear. Indian companies are assisting in enhancing the productivity, managerial talents and bailing out bankrupt US companies.'' Not only are Indian companies creating new jobs and boosting wages, investments from India are strengthening US manufacturing and contributing to rising productivity.
Indian investments bring in managerial talent, provide quality training and help the US companies penetrate foreign markets.
These investments also increase exports and provide a global platform to smaller and mid-sized companies.
The FICCI- E&Y report points out 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.
UNI PV VJ HT1300