Guest blog post by Vinai Thummalapally, Executive Director of the SelectUSA Program.
I recently had the great pleasure of participating in an exciting event with Secretary of Commerce Penny Pritzker in New Delhi. Hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI), the event brought together business leaders, investors, and national business associations from across India. I had the opportunity to hear their ideas and share in their excitement about India’s fast-growing foreign direct investment (FDI) in the United States.
India is now the fourth fastest-growing source of FDI into the United States, with a stock of $11 billion in investments as of 2013. As the latest available data show, FDI from India provides:
- Jobs: U.S. subsidiaries of Indian firms employed more than 43,800 workers in the United States in 2012, with an average yearly compensation of $69,800, well above the national average.
- Innovative R&D: In 2011, U.S. subsidiaries of Indian firms invested $46 million in research and development in the United States.
- U.S. Exports: U.S. subsidiaries of Indian firms exported goods worth more than $2 billion from the United States in 2012.
These figures from the U.S. Bureau of Economic Analysis represent real stories of thriving businesses creating real jobs. SelectUSA, the U.S. government-wide program created to facilitate investment in the United States, has assisted several Indian companies as they sought to set up operations locally.
For example, Shri Govindaraja Textiles, or SG Mills, is a third-generation, family-owned business. The group is the largest spinner in India with a total workforce of 30,000 employees. Last year, SelectUSA and the U.S. Commercial Service office in New Delhi, helped company management develop and execute a work plan as they considered investing in the United States. Recently, SG Mills opened its first U.S.-based operation in Eden, North Carolina, and announced plans to invest more than $40 million during the next two years.