A brief on Trade and Investments outlook between India and US.
India and For the period April-December 2008, India the US
imported goods worth US$ 13.89 billion
from the US.
India and the United States (US) politically
and economically play a significant role in
India mostly exports gems and jewellery,
the global arena. The US is India?s largest organic chemicals and engineering goods
export destination and also one of the and textiles to the US.
leading foreign investors in India. Further,
with the Indian economy estimated to grow During 2007-08, merchandise exports from
to 90 per cent of the US economy by 2050,
India to US went up by 9.81 per cent to
the growing Indo-US relationship will be a
reach US$ 20.72 billion against US$ 18.85
decisive force shaping the contours of the
world billion in 2006-07. economy in the 21st century.
For the period April-December 2008, India
India may soon attract huge investments
exported goods worth US$ 15.71 billion to
from American companies in the solar
energy sector. Fourteen American
companies visited India in late March 2009 US Investments in India
to explore business opportunities in solar
energy sector in the country, as part of the
India's rapidly expanding economy along
first official trade mission of the new with a booming consumer market and easy
administration of the US President Barack
Ob availability of skilled personnel has been ama.
instrumental in attracting several American
Moreo companies to invest in India. The overall ver, US fund houses are showing
foreign direct investment (FDI) equity flow
great confidence in the Indian economy.
T into India from the US during April 2000-hey have recently launched five more March 2009 was US$ 6.3 billion. During
India -specific exchange-traded funds
2008-09, FDI inflow from the US was US$
(ETFs) to tap India?s growth potential.
On other fronts too, India and the US After companies like Microsoft, Intel, IBM,
continue to enter into agreements. They Dell, Citigroup, J P Morgan and Morgan
recently concluded three agreements
Stanley, many other US companies are also
including the creation of a science and
planning to enter the Indian market with
technology endowment fund and a technical
safeguard agreement for the launch of
civilian satellites incorporating US ? Alexandria, the US-based life science
infrastructure company, will invest
Trade around US$ 200 million in Andhra
Pradesh Industrial Infrastructure
Corporation?s SEZ Genome Valley in
Bilateral trade between India and US Hyderabad.
amounted to US$ 41.75 billion in 2007-08. ? The American aerospace industry
will be investing in the development
India imports aircraft and aviation
m of infrastructure in India's aviation, achinery, nuclear reactors, optical and
m after selling aircraft and edical instruments, precious stones and
m components to India. etals, fertilizers and organic chemicals ? US-based Astonfield Renewable
from the US. Indian imports from the US Resources is planning to start
grew by an astonishing 79.33 per cent to renewable energy greenfield
reach US$ 21.02 billion in 2007-08 against projects of 500 mega watts (MW)
US$ 11.72 billion in 2006-07. across India over the next 5-7 years.
Besides the big companies investing in
India, the country continues to provide back
office work to a large number of US headquartered Hartmarx
companies and industries, such as Medical Corporation for US$ 119 million.
Transcription (MT). It is estimated the size ? Besides, Biocon Ltd has entered into
of the US MT industry would reach US$ 16.8 an exclusive collaboration with the
billion by 2010. The work offshored is US-based generic drugs major
expected to be in the region of US$ 860 Mylan Inc to develop, manufacture,
million in 2010, of which India is expected supply and commercialise many
to capture US$ 647 million. high-value generic biologic
compounds for the global markets.
Indian Investments in US
Indian investments in the US have been
growing significantly since 2002, by around There are several areas where there is
75 per cent per year. Investments in 2006 abundant scope to further improve
were estimated at around US$ 2 billion and economic cooperation between India and
rose sharply in 2007 to touch US$ 13 billion. the US. Opportunities for progress exists
In 2007-08 alone, an estimated US$ 10.25 especially in areas like communication
billion was invested by Indian companies in infrastructure, the IT sector, telecom sector,
the US. In 2008, investments were in excess IT-enabled services, data centres, software
of US$ 8 billion as on May 2008. development, and other knowledge
industries such as pharmaceuticals and
According to a study jointly conducted by biotechnology.
Indian industry association FICCI and Ernst
& Young, during the last two years, Indian A white paper titled, 'India's Role in the
companies acquired 143 US firms across Globalization of the IT Industry' by
various sectors. While 94 deals were Evalueserve, a knowledge process
concluded in 2007-08, in the following year outsourcing company, states that India is
when the economy was on the downturn, likely to emerge as the second largest IT
Indians bought as many as 50 US entities industry after the US in terms of revenue
that were on the verge of closure, saving and employment. As the US and India?s IT
thousands of jobs. industries are closely and inextricably
linked with each other, the two countries
According to the study, Tata Chemicals, will import and export more IT services and
Wipro, Reliance Communications and products for the coming seven to eight
Firstsource Solutions were some of the top years.
Indian entities that were involved in bailing
out US companies in the red. According to a Confederation of India
Industry (CII) report titled ?India-US
Another study called the ?Contribution of Economic Relations: The Next Decade?,
the Indian industry to the US economy? says bilateral trade between India and the US
that during the period 2004-07, Indian could increase eight fold to US$ 320 billion
industry had contributed US$ 105 billion to in 2018 from US$ 42 billion in 2007-08.
the US economy and created 300,000 jobs.
Some recent investments include:
? Pharma major Lupin has acquired
the global rights for an intra-nasal
steroid (INS) product, AllerNaze
from Collegium Pharmaceuticals, a
mid-size innovator company in the
? S. Kumars Nationwide, along with
its operating partner Emerisque,
UK, has acquired Chicago-
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