On 15 June, 2020, CII released its sixth Indian Roots, American Soil survey report highlighting the footprint of Indian Industry across the United States. Indian companies are investing heavily in the US, and over the past decade, CII has risen to the challenge as the sole aggregator of the hard data and statistics necessary in documenting the impact of Indian Industry in communities across the country.
India-U.S. trade has grown significantly over the last two decades, from $19 billion in 2000 to $142 billion in 2018—a 750% increase with a compound annual growth rate (CAGR) of 11.8%. Overall trade consistently witnessed double-digit growth until 2011, excepting two years of negative growth in 2001 and 2009 due to the global economic downturn. In recent years, the U.S. trade deficit with India decreased from $31 billion in 2014 to $24.2 billion in 2018, a decline of nearly 22% in four years as the share of services in the trade basket has increased 11.6 times from 2000 to 2018, reflecting a CAGR of 14.6% vis-à-vis a CAGR of 10.6% trade in goods.
The US is a priority market for Indian Industry, and the information gathered in the CII survey documents a state-by-state breakdown of investments, job creation, corporate social responsibility efforts, research and development innovation initiatives, and indications of Indian companies’ future plans, comprising the most conclusive, holistic data set available to understand the impact of Indian Industry in the US. The 2020 edition of Indian Roots, American Soil reflected the deepening interest and levels of engagement of Indian companies across the country, with over 150 companies responding to the survey request in the most successful CII outreach since the report was first launched.
The 2020 edition surveyed 155 companies present in all 50 US states, as well as Washington, D.C. and the territory of Puerto Rico. Survey findings reveal that together, Indian companies employ nearly 125,000 people in the US, with tangible investments exceeding over $22 billion across diverse sectors including pharmaceuticals and life sciences, telecommunications, aerospace and defense, financial services, manufacturing, tourism and hospitality, design and engineering, automotive, food and agriculture, energy and mining materials. 77% of the respondents are planning new US investments in the next five years, while 83% are anticipating hiring additional employees for their US ventures.
The states of Texas (17,578), California (8,271), New Jersey (8,057), New York (6,175), and Florida (5,454) are home to the greatest number of workers in the US directly employed by the reporting Indian companies, who disclosed the highest amounts of foreign direct investment (FDI) in Texas ($9.5 billion), New Jersey ($2.4 billion), New York ($1.8 billion), Florida ($915 million), and Massachusetts ($873 million). The states with the top concentrations of Indian companies reporting were New Jersey, Texas, California, New York, Illinois and Georgia, while companies cited that New York, Texas, New Jersey, Georgia, California, Florida, Michigan and Washington have the most favourable business climates for Indian companies.
The surveyed companies also provided data regarding their corporate social responsibility and research and development expenditures, which totaled $175 million and $900 million, respectively. Over the next five years, 44% are planning research and development expenditures in the US.
Launched via WebEx, the Indian Roots, American Soil event featured US government officials encouraging Indian Industry to continue expanding their presence in the US, while highlighting the report’s findings of Indian companies’ contributions to the US economy in the forms of FDI, jobs created and saved, research and development, skills training and local corporate social responsibility initiatives – including Indian companies’ support to the US in its fight against COVID-19.
The Indian Roots, American Soil report remains the sole, critical source of information for both Indian companies looking to navigate the US business landscape, as well as US industry chambers, legislators, and economic development organizations seeking to understand Indian business trends and secure new investments in their constituencies. As CII will continue to document, the steady expansion of Indian Inc. across the US enhances their adopted communities, reinforcing that Indian companies are now and forever an integral part of the American social and economic fabric.