Obama discourages American companies to outsource to India, and moves towards a stringent policy of granting H-1B visas. American companies are still hesitant to collaborate on high tech products with its counterparts in India. USA keeps on hurting the Indians with the aid and support to Pakistan for buying warfare equipment to be used against India. All these raise question in the minds of Indians at large-Why can’t the most powerful democracy cooperate more visibly with the most populous democracy of the world? And there are many studies inferring that India and Indians are now helping US pretty significantly.
During the period 2004-07, the Indian industry had contributed $105 billion to the US economy and created 300,000 jobs.
The Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst and Young have released a report titled ‘India Contributes to Employment, Capital Growth and Tax Revenues in the US: Direct Investments by Indian Companies in 2007-09’.
According to the report, in the financial years 2007-08 and 2008-09, Indian companies made 143 acquisitions across various sectors in the US. On the basis of public records and according to the values of the deals that were disclosed, India Inc has had deals worth $5,392 million during the financial years 2007-08 and 2008-09.
Indian steel producers – JSW Steel and Essar Steel – plan to ramp up production at mills in North America, which have been running at less than half the capacity.
American auto component giant Visteon’s investment bankers have approached Delhi-based auto parts major Amtek Auto for the sale of its plants and businesses. The $9.5-billion Visteon filed for Chapter 11 in May, a month after its UK units independently filed for bankruptcy after continued production cutbacks by its customers eroded the company’s financial stability. Visteon makes a whole range of components for vehicle makers, including light systems, air-conditioning systems, electronics equipment, power train control equipment and interior components.
Unfortunately, American companies didn’t take initiative to come in India in big way and preferred China because of the inefficient bureaucracies and its red tape. However when some like GE and Texas instruments took the initiatives, American industries realized what India can provide in return. However, I consider the government of the time was equally responsible.
If India grows at a rate anything above 8%, Indian market with a huge mass of consumers will force American companies to get attracted to India. I wish American politicians and bureaucrats appreciate the role that India can play on global issues. I do also wish if US could help India in checking China in the neghbourhood of India.
Will India-US relationship move to “3.0” as desired by the secretary of state?