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INDIAN ROOTS,
AMERICAN SOIL
A survey of Indian companies' investments
and operations in the United States
Copyright ©(2017) Confederationof Indian Industry(CII).Allrights reserved.
No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical,
photocopying, recording or otherwise), in part or full in any manner whatsoever, or translated into any language, without the prior written permission of the copyright owner.
CIIhasmadeeveryefforttoensuretheaccuracyoftheinformationandmaterialpresentedinthisdocument.Nonetheless,allinformation,estimatesandopinionscontained
in this publication are subject to change without notice, and do not constitute professional advice in any manner. Neither CII nor any of its office bearers or analysts or
employees accept or assume any responsibility or liability in respect of the information provided herein. However, any discrepancy, error, etc. found in this publication may
pleasebebroughttothenoticeofCIIforappropriatecorrection.
Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi 110003, India,
Tel:+91-11-24629994-7,Fax:+91-11-24626149,Email:info@cii.in,Web:www.cii.in
Content
03 Introduction
05 Survey Overview
11 Survey Results: Top 25 states with largest Indian investment
12 New York
13 New Jersey
14 Massachusetts
15 California
16 Wyoming
17 Texas
18 Kentucky
19 Arkansas
20 Georgia
21 Illinois
22 Pennsylvania
23 Michigan
24 Missouri
25 Tennessee
26 Ohio
27 North Carolina
28 Louisiana
29 Virginia
30 Washington
31 Oregon
32 Minnesota
33 Indiana
34 West Virginia
35 Maryland
36 Florida
Introduction
The bilateral partnership between the United States and
India has been transformed in the past two
decades—starting with the visit of President Bill Clinton
in 2000, continuing through the Republican
administration of George W. Bush, and solidifying under
President Barack Obama—we expect this trend to
continue under the Trump administration as well. As
administrations have changed, India and the U.S. have
continued to enjoy a strong, warm, and friendly
relationship founded on shared values that include a
commitment to democratic institutions, peace and
prosperity, a robust and expanding economic
cooperation agenda, and close people-to-people ties
represented by 3.5 million Indian Americans. Since
economic liberalization began in India in the early
1990s, the belief in individual agency—that equality of
opportunity can help people get ahead in life—has
gained a firm foothold in India, the way it has for millions
of Americans. The United States has emerged as a
natural partner in helping India achieve its
developmentalgoalsandaspirations.
1
Statistics from The Office of the United States Trade Representative, “India” (updated March 22, 2017)
https://ustr.gov/countries-regions/south-central-asia/india and SelectUSA, “Foreign Direct Investment: India”
https://www.selectusa.gov/servlet/servlet.FileDownload?file=015t0000000LKMV
Trade and commerce between the U.S. and India
continues to grow: in 2016, the U.S. goods and services
trade with India totaled an estimated $114.8 billion.
India is currently the U.S.' 9th largest goods trading
partner, and two-way goods trade stood at $67.7 billion
in 2016. The ongoing success of Indian companies is
why India remains in the top ten fastest-growing
sources of FDI in the U.S. Indian companies are funding
community workforce skills training throughout the
nation, and popular CSR programs include STEM
training for students and U.S. veterans. They have also
invested heavily in R&D and innovation across a wide
spectrum of sectors, enhancing the competitiveness of
1
theU.S.economy,andfuelinginnovation.
This report is CII’s effort to shine a light on the relatively
unknown story of Indian Foreign Direct Investment into
the United States and the ways in which it is
transformingthebilateralpartnershipinpositiveways.
03
INDIAN ROOTS,
AMERICAN SOIL
Survey Overview
Every two years, the Confederation of Indian Industry
surveys Indian companies with investments and
operations across a wide spectrum of sectors in the
U.S. The data reflects the reach and spread of Indian
FDI across all 50 U.S. states, Washington, D.C., and
Puerto Rico, and shows the significant impact that
Indian companies’ investments have on the U.S.
economy. The following survey report is based on
responses from 100 Indian companies and pertains
to tangible foreign direct investment (FDI), job
creation numbers, corporate social responsibility
(CSR) and research and development (R&D)
activities, and also provides a peek into future
investment plans within the U.S. The state-by-state
breakout featured in this edition illustrates both a
positive trajectory of investments and job creation, as
well as the expanding geographic sprawl and impact
ofIndiancompaniesontheU.S.economy.
This fifth edition of the “Indian Roots, American Soil”
survey report indicates that Indian companies are not
only adding value to the U.S. economy, they are
investinginitspeopleaswell.
The top five states with the highest concentration of
companies surveyed are New Jersey, Texas, California,
New York, and Pennsylvania. However, Indian companies
have an operational presence (i.e. physical investments,
as well as leased spaces) in all 50 states, as well as in
Washington, D.C., and Puerto Rico. 23 states were found
tohave10ormoreIndiancompaniespresent.
RESULTS HIGHLIGHTS
Top 5 states: Beneficiaries of the highest Indian FDI
Top 5 states: With the highest number of jobs
100companies in the United States responded to the survey
Total Investment
> $17.9 billion
Total Employees
> 113,423
Total Research & Development Expenditure
> $588 million
Total Corporate Social Responsibility Programs Expenditure
>$147 million
Indian companies are spread across 50 states, as well as
Washington, D.C., and Puerto Rico with tangible investments
in 40 states
STATE
INVESTMENT
STATE
TOTAL
EMPLOYEES
* Numbers have been rounded to nearest ten
05
New York $1.570 billion
New Jersey $1.567 billion
Massachusetts $931 million
California $542 million
Wyoming $435 million
New Jersey 8,570
Texas 7,270
California 6,750
New York 5,140
Georgia 4,550
*Numbers have been rounded to nearest million
Indian companies in the United States: Presence
INDIAN ROOTS,
AMERICAN SOIL
Figure 1: Indian companies in the United States: Geographical presence
Over 15 companies Between 5-15 companies Less than 5 companies
AK
HI
WA
OR
CA
MT
ND
SD
IANE
WY
ID
NV
UT
NM
OK TN
MS AL
WV
ME
AZ
CO
KS
TX
MN
WI
IL
MO
AR
LA
IN
MI
OH
PA
KY
VA
NC
SC
GA
FL
NY
MA
RI
CT
NJ
DE
MD
VT NH
PR
DC
06
INDIAN ROOTS,
AMERICAN SOIL
Indian companies in the United States: Sector diversification
Sector diversification amongst Indian companies
persists with the most concentration in sectors such
as IT and IT-es; life sciences, pharmaceuticals, and
healthcare; manufacturing; energy; food and
agriculture; automotive; financial services; design,
engineering, and construction; tourism and
hospitality; mining and materials; telecommunications;
andaerospaceanddefense.
Figure 2: Indian companies in the United States:
Sector diversification
Figure 3: Beneficiaries of the highest investment from
Indian companies: Top 5 U.S. states
Indian companies in the United States: Tangible investments
The aggregate tangible investment figure across the
U.S. of the Indian companies surveyed is in excess of
$17.9 billion. These tangible investments are spread
across 40 U.S. states and territories. 14 states list
investments numbering at $100 million or more. The
five states that received the maximum volume of
investments from Indian companies are: New York
($1.570 billion), New Jersey ($1.567 billion),
Massachusetts ($931 million), California ($542
million),andWyoming($435million).
NewYork
NewJersey
California
Wyoming
$3
$2
$1
$0
Massachusetts
07
Information Technology and ITES 28%
Life Sciences, Pharmaceuticals 25%
and Healthcare
Manufacturing 14%
Energy 11%
Food and Agriculture 5%
Automotive 4%
Financial services 4%
Design, Engineering and Construction 3%
Other 2%
Tourism and Hospitality 1%
Mining, and Materials 1%
Telecommunications 1%
Aerospace and Defense 1%
Totalvolmeofinvestmentby
Indiancompanies(billions)
INDIAN ROOTS,
AMERICAN SOIL
Indian companies in the United States: Employment Generated
Collectively, the surveyed Indian companies have
generated employment for 113,423 people in the U.S.
These are of course direct jobs, and taking into account
the multiplier effect, which measures how a given
change can cause a larger change in output, these direct
jobs are certainly leading to an even greater
employment boost in a range of other sectors
supporting the industries, as well as jobs created
through related ancillary services. The quantum impact
ofdirectjobsisinthatsenseverysignificant.
The top five states benefitting from employment by
Indian companies are New Jersey (8,572 jobs), Texas
(7,271 jobs), California (6,749 jobs), New York (5,135
jobs),andGeorgia(4,554jobs).
20 U.S. states and territories have at least 1,000 people
directlyemployedbyIndiancompanies.
Figure 4: Beneficiaries of maximum employment from
Indian companies: Top 5 U.S. states
Indian companies in the United States: Research & Development
57% of the Indian companies surveyed reported
conducting research and development (R&D) across
the U.S. The total expenditure by Indian companies
into R&D and innovation activities in the U.S.
amounted to more than $588 million. Based on the
trajectory of the knowledge economy in the U.S., and
indeed around the globe, and the pace at which
technology is changing and shifting, we can expect
investments into this area to expand going forward as
well—this is true for companies across the board and
notforanysinglesector.
Figure 5: Do Indian companies conduct R&D in the U.S.?
Yes 57%
No 37%
Unanswered 6%
08
Totalnumberofjobscreatedby
Indiancompanies(thousands)
NewJersey
Texas
California
NewYork
Georgia
1
2
3
4
5
6
7
8
9
10
0
INDIAN ROOTS,
AMERICAN SOIL
Indian companies in the United States: Corporate Social Responsibility
Indian companies in the U.S. are not just investing
money and creating jobs: they are actively contributing
to the local economies where they operate. The
companies surveyed in this report listed over $147
million spent on corporate social responsibility (CSR)
initiatives in the United States. Programming for CSR
ranged from initiatives as localized as donating to the
community Fire and Rescue service and building homes
through Habitat for Humanity, to sponsoring and
supporting students in areas as diverse as agricultural
science to high end STEM programs at universities and
colleges across the U.S. Indian companies also report
focusing on skills and technical training programs that
are designed to help local students and U.S. veterans
develop the competitive skills needed to participate in
the knowledge economy—investments into the future
workforce or in re-skilling also enable Indian companies
to continue hiring locally in the U.S. Much of the
educational programming funded and supported by
Indian companies is also targeted at minority and female
students, who have traditionally lacked access to STEM
trainingandcareeroptions.
Indian companies in the United States: Future plans
The U.S. has traditionally ranked among the top five
destinations of FDI from India, and according to
SelectUSA of the U.S. Department of Commerce, in 2015
(latest data available) Indian investment in the U.S. was
the ninth fastest-growing. Expectations that Indian
investment will continue to rise is supported by the data
in this survey report, wherein 85% of respondents
asserted the intention to invest more in the U.S. over the
nextfiveyears.
Figure 6: Do Indian companies engage in
CSR initiatives in the U.S.?
Yes 65%
No 25%
Unanswered 10%
09
Figure 7: Do Indian companies plan to make
investments in the United States in the next five years?
Yes 85%
No 7%
Not Sure 8%
INDIAN ROOTS,
AMERICAN SOIL
Nearly 87% of the surveyed companies also indicated
that in the next five years they plan to expand their local
hires, with the states of Texas, New York, New Jersey,
California, and Georgia cited as the most promising
statesforfutureinvestments.
Figure 8: Do Indian companies plan to hire more
employees locally in the United States in the next five years?
Yes 87%
No 6%
Not Sure 7%
Conclusion
As borne out in the preceding pages, the investment footprint of Indian companies in the United States has continued to grow
andexpandinsubstantiveways.TangibleinvestmentsandjobcreationbyIndiancompaniesisnotonlyrevitalizingandadding
dynamism to the local U.S., economy but is also helping to enhance the competitiveness of U.S. companies in the global
marketplace.
This year’s survey report illustrates that Indian roots are growing deeper as increased participation in CSR and R&D activities
indicate that Indian companies are not only investing dollars in their adopted communities in terms of brick and mortar
facilities, but they are in essence investing in the communities’ future by supporting long term social, educational, capacity
building, and skilling programs. As the U.S.-India partnership grows and flourishes, drawing the two countries closer together
in bonds of friendship, we expect that the Indian investment story in the U.S. will continue to be a positive aspect adding ballast
toanalreadystrongfoundationinbilateralties.
10
INDIAN ROOTS,
AMERICAN SOIL
Survey Results
Top 25 states with largest
Indian investment
11
INDIAN ROOTS,
AMERICAN SOIL
New York
01
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$1,569,786,086
5,135
25
NY
12
Indian companies in New York: Sector diversification
Information Technology and ITES 56.00%
Life Sciences, Pharmaceuticals 12.00%
and Healthcare
Energy 8.00%
Financial Services 8.00%
Manufacturing 8.00%
Tourism and Hospitality 4.00%
Other 4.00%
INDIAN ROOTS,
AMERICAN SOIL
New Jersey
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$1,566,818,611
8,572
38
02
13
Information Technology and ITES 42.11%
Life Sciences, Pharmaceuticals 31.58%
and Healthcare
Manufacturing 5.26%
Energy 2.63%
Telecommunications 2.63%
Mining, and Materials 2.63%
Financial Services 2.63%
Other 2.63%
Food and Agriculture 2.63%
Design, Engineering 2.63%
and Construction
Automotive 2.63%
Indian companies in : Sector diversificationNew Jersey
INDIAN ROOTS,
AMERICAN SOIL
Total volume of investment ($)
Number of jobs created
Number of Indian companies present:
$930,584,298
2,318
16
Massachusetts
03
14
Information Technology and ITES 68.75%
Other 6.25%
Manufacturing 6.25%
Tourism and Hospitality 6.25%
Design, Engineering 6.25%
and Construction
Life Sciences, Pharmaceuticals 6.25%
and Healthcare
Indian companies in : Sector diversificationMassachusetts
INDIAN ROOTS,
AMERICAN SOIL
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$542,421,564
6,749
29
California
04
Information Technology and ITES 51.72%
Food and Agriculture 10.34%
Design, Engineering 6.90%
and Construction
Manufacturing 6.90%
Other 6.90%
Life Sciences, Pharmaceuticals 6.90%
and Healthcare
Financial Services 3.45%
Tourism and Hospitality 3.45%
Telecommunications 3.45%
15
Indian companies in : Sector diversificationCalifornia
INDIAN ROOTS,
AMERICAN SOIL
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$435,000,000
534
2
Wyoming
05
16
Mining, and Materials 50.00%
Information Technology 50.00%
and ITES
Indian companies in : Sector diversificationWyoming
WV
INDIAN ROOTS,
AMERICAN SOIL
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$391,999,033
7,271
31
Texas
06
17
Information Technology and ITES 45.16%
Energy 25.81%
Other 6.45%
Life Sciences, Pharmaceuticals 6.45%
and Healthcare
Manufacturing 6.45%
Financial Services 3.23%
Design, Engineering 3.23%
and Construction
Food and Agriculture 3.23%
Indian companies in : Sector diversificationTexas
INDIAN ROOTS,
AMERICAN SOIL
18
Kentucky
07
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$299,362,962
1,641
13
Information Technology 69.23%
and ITES
Manufacturing 15.38%
Life Sciences, Pharmaceuticals 15.38%
and Healthcare
Indian companies in : Sector diversificationKentucky
INDIAN ROOTS,
AMERICAN SOIL
Arkansas
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$298,850,000
1,091
8
08
19
Information Technology 62.50%
and ITES
Food and Agriculture 12.50%
Other 12.50%
Manufacturing 12.50%
Indian companies in : Sector diversificationArkansas
INDIAN ROOTS,
AMERICAN SOIL
20
Georgia
09
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$253,048,292
4,554
19
Information Technology 73.68%
and ITES
Manufacturing 10.53%
Other 5.26%
Design, Engineering 5.26%
and Construction
Life Sciences, Pharmaceuticals 5.26%
and Healthcare
Indian companies in : Sector diversificationGeorgia
INDIAN ROOTS,
AMERICAN SOIL
21
Illinois
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$195,701,669
3,802
19
10
Information Technology 63.16%
and ITES
Other 10.53%
Energy 10.53%
Life Sciences, Pharmaceuticals 5.26%
and Healthcare
Design, Engineering 5.26%
and Construction
Financial Services 5.26%
Indian companies in : Sector diversificationIllinois
INDIAN ROOTS,
AMERICAN SOIL
22
Pennsylvania
11
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$170,641,000
1,865
23
Information Technology 47.83%
and ITES
Life Sciences, Pharmaceuticals 26.09%
and Healthcare
Other 8.70%
Manufacturing 4.35%
Food and Agriculture 4.35%
Energy 4.35%
Automotive 4.35%
Indian companies in : Sector diversificationPennsylvania
INDIAN ROOTS,
AMERICAN SOIL
Michigan
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$146,769,333
2,098
21
12
23
Information Technology 47.62%
and ITES
Automotive 14.29%
Design, Engineering 9.52%
and Construction
Manufacturing 9.52%
Life Sciences, Pharmaceuticals 9.52%
and Healthcare
Other 4.76%
Energy 4.76%
Indian companies in : Sector diversificationMichigan
Responses may not total 100% due to rounding.
INDIAN ROOTS,
AMERICAN SOIL
24
Missouri
13
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$139,000,000
989
9
Information Technology 55.56%
and ITES
Life Sciences, Pharmaceuticals 22.22%
and Healthcare
Other 11.11%
Energy 11.11%
Indian companies in : Sector diversificationMissouri
INDIAN ROOTS,
AMERICAN SOIL
Tennessee
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$102,656,000
779
11
14
Information Technology 54.55%
and ITES
Life Sciences, Pharmaceuticals 18.18%
and Healthcare
Other 9.09%
Food and Agriculture 9.09%
Automotive 9.09%
25
Indian companies in : Sector diversificationTennessee
Responses may not total 100% due to rounding.
INDIAN ROOTS,
AMERICAN SOIL
26
Ohio
15
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$74,407,203
3,188
17
Information Technology 64.71%
and ITES
Manufacturing 23.53%
Other 5.88%
Design, Engineering 5.88%
and Construction
Indian companies in : Sector diversificationOhio
INDIAN ROOTS,
AMERICAN SOIL
North Carolina
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$63,572,000
3,992
14
16
Information Technology 71.43%
and ITES
Other 14.29%
Design, Engineering 7.14%
and Construction
Life Sciences, Pharmaceuticals 7.14%
and Healthcare
27
Indian companies in : Sector diversificationNorth Carolina
INDIAN ROOTS,
AMERICAN SOIL
28
Louisiana
17
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$63,003,282
293
8
Information Technology 75.00%
and ITES
Life Sciences, Pharmaceuticals 25.00%
and Healthcare
Indian companies in : Sector diversificationLouisiana
INDIAN ROOTS,
AMERICAN SOIL
29
Virginia
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$37,883,760
1,868
16
18
Information Technology 75.00%
and ITES
Other 6.25%
Telecommunications 6.25%
Life Sciences, Pharmaceuticals 6.25%
and Healthcare
Manufacturing 6.25%
Indian companies in : Sector diversificationVirginia
INDIAN ROOTS,
AMERICAN SOIL
30
Washington
19
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$37,204,152
3,397
16
Information Technology 68.75%
and ITES
Manufacturing 6.25%
Energy 6.25%
Other 6.25%
Design, Engineering 6.25%
and Construction
Life Sciences, Pharmaceuticals 6.25%
and Healthcare
Indian companies in : Sector diversificationWashington
INDIAN ROOTS,
AMERICAN SOIL
31
Oregon
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$25,000,000
558
12
20
Information Technology 58.33%
and ITES
Other 8.33%
Food and Agriculture 8.33%
Design, Engineering 8.33%
and Construction
Automotive 8.33%
Energy 8.33%
Indian companies in : Sector diversificationOregon
INDIAN ROOTS,
AMERICAN SOIL
32
Minnesota
21
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$24,142,000
2,297
14
Information Technology 71.43%
and ITES
Other 7.14%
Life Sciences, Pharmaceuticals 7.14%
and Healthcare
Energy 7.14%
Aerospace and Defense 7.14%
Indian companies in : Sector diversificationMinnesota
INDIAN ROOTS,
AMERICAN SOIL
33
Indiana
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$21,004,000
1,620
9
22
Information Technology 66.67%
and ITES
Energy 11.11%
Other 11.11%
Manufacturing 11.11%
Indian companies in : Sector diversificationIndiana
INDIAN ROOTS,
AMERICAN SOIL
34
West Virginia
23
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$20,000,000
186
5
WV
Information Technology 60.00%
and ITES
Manufacturing 20.00%
Energy 20.00%
Indian companies in : Sector diversificationWest Virginia
INDIAN ROOTS,
AMERICAN SOIL
35
Maryland
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$14,920,000
803
14
24
Information Technology 57.14%
and ITES
Life Sciences, Pharmaceuticals 21.43%
and Healthcare
Other 7.14%
Food and Agriculture 7.14%
Design, Engineering 7.14%
and Construction
Indian companies in : Sector diversificationMaryland
INDIAN ROOTS,
AMERICAN SOIL
Florida
25
Total volume of investment ($)
Number of jobs created
Number of Indian companies present
$13,002,881
3,878
18
FL
Information Technology 55.56%
and ITES
Life Sciences, Pharmaceuticals 16.67%
and Healthcare
Other 11.11%
Manufacturing 5.56%
Aerospace and Defense 5.56%
Design, Engineering 5.56%
and Construction
36
Indian companies in : Sector diversificationFlorida
INDIAN ROOTS,
AMERICAN SOIL
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003 (India)
T: 91 11 45771000 / 24629994-7 | F: 91 11 24626149
E: info@cii.in | W: www.cii.in
The Confederation of Indian Industry (CII) works to create and sustain an environment
conducive to the development of India, partnering industry, Government, and civil
society,through advisoryandconsultativeprocesses.
CII is a non-government, not-for-profit, industry-led and industry-managed
organization, playing a proactive role in India's development process. Founded in 1895,
India's premier business association has over 8,500 members, from the private as well as
public sectors, including SMEs and MNCs, and an indirect membership of over 200,000
enterprisesfromaround 250nationalandregionalsectoralindustrybodies.
CII charts change by working closely with Government on policy issues, interfacing with
thought leaders, and enhancing efficiency, competitiveness and business opportunities
for industry through a range of specialized services and strategic global linkages. It also
providesaplatformforconsensus-building andnetworkingonkeyissues.
Extending its agenda beyond business, CII assists industry to identify and execute
corporate citizenship programmes. Partnerships with civil society organizations carry
forward corporate initiatives for integrated and inclusive development across diverse
domains including affirmative action, healthcare, education, livelihood, diversity
management,skilldevelopment,empowermentofwomen,andwater,tonameafew.
The CII theme for 2017-18, India Together: Inclusive. Ahead. Responsible emphasizes
Industry's role in partnering Government to accelerate India's growth and development.
The focus will be on key enablers such as job creation; skill development and training;
affirmative action; women parity; new models of development; sustainability; corporate
socialresponsibility,governanceandtransparency.
With 67 offices, including 9 Centres of Excellence, in India, and 11 overseas offices in
Australia, Bahrain, China, Egypt, France, Germany, Iran, Singapore, South Africa, UK, and
USA, as well as institutional partnerships with 344 counterpart organizations in 129
countries, CII serves as a reference point for Indian industry and the international
businesscommunity.

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Indian Roots American Soil

  • 1. INDIAN ROOTS, AMERICAN SOIL A survey of Indian companies' investments and operations in the United States
  • 2. Copyright ©(2017) Confederationof Indian Industry(CII).Allrights reserved. No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), in part or full in any manner whatsoever, or translated into any language, without the prior written permission of the copyright owner. CIIhasmadeeveryefforttoensuretheaccuracyoftheinformationandmaterialpresentedinthisdocument.Nonetheless,allinformation,estimatesandopinionscontained in this publication are subject to change without notice, and do not constitute professional advice in any manner. Neither CII nor any of its office bearers or analysts or employees accept or assume any responsibility or liability in respect of the information provided herein. However, any discrepancy, error, etc. found in this publication may pleasebebroughttothenoticeofCIIforappropriatecorrection. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi 110003, India, Tel:+91-11-24629994-7,Fax:+91-11-24626149,Email:info@cii.in,Web:www.cii.in
  • 3. Content 03 Introduction 05 Survey Overview 11 Survey Results: Top 25 states with largest Indian investment 12 New York 13 New Jersey 14 Massachusetts 15 California 16 Wyoming 17 Texas 18 Kentucky 19 Arkansas 20 Georgia 21 Illinois 22 Pennsylvania 23 Michigan 24 Missouri 25 Tennessee 26 Ohio 27 North Carolina 28 Louisiana 29 Virginia 30 Washington 31 Oregon 32 Minnesota 33 Indiana 34 West Virginia 35 Maryland 36 Florida
  • 4.
  • 5. Introduction The bilateral partnership between the United States and India has been transformed in the past two decades—starting with the visit of President Bill Clinton in 2000, continuing through the Republican administration of George W. Bush, and solidifying under President Barack Obama—we expect this trend to continue under the Trump administration as well. As administrations have changed, India and the U.S. have continued to enjoy a strong, warm, and friendly relationship founded on shared values that include a commitment to democratic institutions, peace and prosperity, a robust and expanding economic cooperation agenda, and close people-to-people ties represented by 3.5 million Indian Americans. Since economic liberalization began in India in the early 1990s, the belief in individual agency—that equality of opportunity can help people get ahead in life—has gained a firm foothold in India, the way it has for millions of Americans. The United States has emerged as a natural partner in helping India achieve its developmentalgoalsandaspirations. 1 Statistics from The Office of the United States Trade Representative, “India” (updated March 22, 2017) https://ustr.gov/countries-regions/south-central-asia/india and SelectUSA, “Foreign Direct Investment: India” https://www.selectusa.gov/servlet/servlet.FileDownload?file=015t0000000LKMV Trade and commerce between the U.S. and India continues to grow: in 2016, the U.S. goods and services trade with India totaled an estimated $114.8 billion. India is currently the U.S.' 9th largest goods trading partner, and two-way goods trade stood at $67.7 billion in 2016. The ongoing success of Indian companies is why India remains in the top ten fastest-growing sources of FDI in the U.S. Indian companies are funding community workforce skills training throughout the nation, and popular CSR programs include STEM training for students and U.S. veterans. They have also invested heavily in R&D and innovation across a wide spectrum of sectors, enhancing the competitiveness of 1 theU.S.economy,andfuelinginnovation. This report is CII’s effort to shine a light on the relatively unknown story of Indian Foreign Direct Investment into the United States and the ways in which it is transformingthebilateralpartnershipinpositiveways. 03 INDIAN ROOTS, AMERICAN SOIL
  • 6.
  • 7. Survey Overview Every two years, the Confederation of Indian Industry surveys Indian companies with investments and operations across a wide spectrum of sectors in the U.S. The data reflects the reach and spread of Indian FDI across all 50 U.S. states, Washington, D.C., and Puerto Rico, and shows the significant impact that Indian companies’ investments have on the U.S. economy. The following survey report is based on responses from 100 Indian companies and pertains to tangible foreign direct investment (FDI), job creation numbers, corporate social responsibility (CSR) and research and development (R&D) activities, and also provides a peek into future investment plans within the U.S. The state-by-state breakout featured in this edition illustrates both a positive trajectory of investments and job creation, as well as the expanding geographic sprawl and impact ofIndiancompaniesontheU.S.economy. This fifth edition of the “Indian Roots, American Soil” survey report indicates that Indian companies are not only adding value to the U.S. economy, they are investinginitspeopleaswell. The top five states with the highest concentration of companies surveyed are New Jersey, Texas, California, New York, and Pennsylvania. However, Indian companies have an operational presence (i.e. physical investments, as well as leased spaces) in all 50 states, as well as in Washington, D.C., and Puerto Rico. 23 states were found tohave10ormoreIndiancompaniespresent. RESULTS HIGHLIGHTS Top 5 states: Beneficiaries of the highest Indian FDI Top 5 states: With the highest number of jobs 100companies in the United States responded to the survey Total Investment > $17.9 billion Total Employees > 113,423 Total Research & Development Expenditure > $588 million Total Corporate Social Responsibility Programs Expenditure >$147 million Indian companies are spread across 50 states, as well as Washington, D.C., and Puerto Rico with tangible investments in 40 states STATE INVESTMENT STATE TOTAL EMPLOYEES * Numbers have been rounded to nearest ten 05 New York $1.570 billion New Jersey $1.567 billion Massachusetts $931 million California $542 million Wyoming $435 million New Jersey 8,570 Texas 7,270 California 6,750 New York 5,140 Georgia 4,550 *Numbers have been rounded to nearest million Indian companies in the United States: Presence INDIAN ROOTS, AMERICAN SOIL
  • 8. Figure 1: Indian companies in the United States: Geographical presence Over 15 companies Between 5-15 companies Less than 5 companies AK HI WA OR CA MT ND SD IANE WY ID NV UT NM OK TN MS AL WV ME AZ CO KS TX MN WI IL MO AR LA IN MI OH PA KY VA NC SC GA FL NY MA RI CT NJ DE MD VT NH PR DC 06 INDIAN ROOTS, AMERICAN SOIL
  • 9. Indian companies in the United States: Sector diversification Sector diversification amongst Indian companies persists with the most concentration in sectors such as IT and IT-es; life sciences, pharmaceuticals, and healthcare; manufacturing; energy; food and agriculture; automotive; financial services; design, engineering, and construction; tourism and hospitality; mining and materials; telecommunications; andaerospaceanddefense. Figure 2: Indian companies in the United States: Sector diversification Figure 3: Beneficiaries of the highest investment from Indian companies: Top 5 U.S. states Indian companies in the United States: Tangible investments The aggregate tangible investment figure across the U.S. of the Indian companies surveyed is in excess of $17.9 billion. These tangible investments are spread across 40 U.S. states and territories. 14 states list investments numbering at $100 million or more. The five states that received the maximum volume of investments from Indian companies are: New York ($1.570 billion), New Jersey ($1.567 billion), Massachusetts ($931 million), California ($542 million),andWyoming($435million). NewYork NewJersey California Wyoming $3 $2 $1 $0 Massachusetts 07 Information Technology and ITES 28% Life Sciences, Pharmaceuticals 25% and Healthcare Manufacturing 14% Energy 11% Food and Agriculture 5% Automotive 4% Financial services 4% Design, Engineering and Construction 3% Other 2% Tourism and Hospitality 1% Mining, and Materials 1% Telecommunications 1% Aerospace and Defense 1% Totalvolmeofinvestmentby Indiancompanies(billions) INDIAN ROOTS, AMERICAN SOIL
  • 10. Indian companies in the United States: Employment Generated Collectively, the surveyed Indian companies have generated employment for 113,423 people in the U.S. These are of course direct jobs, and taking into account the multiplier effect, which measures how a given change can cause a larger change in output, these direct jobs are certainly leading to an even greater employment boost in a range of other sectors supporting the industries, as well as jobs created through related ancillary services. The quantum impact ofdirectjobsisinthatsenseverysignificant. The top five states benefitting from employment by Indian companies are New Jersey (8,572 jobs), Texas (7,271 jobs), California (6,749 jobs), New York (5,135 jobs),andGeorgia(4,554jobs). 20 U.S. states and territories have at least 1,000 people directlyemployedbyIndiancompanies. Figure 4: Beneficiaries of maximum employment from Indian companies: Top 5 U.S. states Indian companies in the United States: Research & Development 57% of the Indian companies surveyed reported conducting research and development (R&D) across the U.S. The total expenditure by Indian companies into R&D and innovation activities in the U.S. amounted to more than $588 million. Based on the trajectory of the knowledge economy in the U.S., and indeed around the globe, and the pace at which technology is changing and shifting, we can expect investments into this area to expand going forward as well—this is true for companies across the board and notforanysinglesector. Figure 5: Do Indian companies conduct R&D in the U.S.? Yes 57% No 37% Unanswered 6% 08 Totalnumberofjobscreatedby Indiancompanies(thousands) NewJersey Texas California NewYork Georgia 1 2 3 4 5 6 7 8 9 10 0 INDIAN ROOTS, AMERICAN SOIL
  • 11. Indian companies in the United States: Corporate Social Responsibility Indian companies in the U.S. are not just investing money and creating jobs: they are actively contributing to the local economies where they operate. The companies surveyed in this report listed over $147 million spent on corporate social responsibility (CSR) initiatives in the United States. Programming for CSR ranged from initiatives as localized as donating to the community Fire and Rescue service and building homes through Habitat for Humanity, to sponsoring and supporting students in areas as diverse as agricultural science to high end STEM programs at universities and colleges across the U.S. Indian companies also report focusing on skills and technical training programs that are designed to help local students and U.S. veterans develop the competitive skills needed to participate in the knowledge economy—investments into the future workforce or in re-skilling also enable Indian companies to continue hiring locally in the U.S. Much of the educational programming funded and supported by Indian companies is also targeted at minority and female students, who have traditionally lacked access to STEM trainingandcareeroptions. Indian companies in the United States: Future plans The U.S. has traditionally ranked among the top five destinations of FDI from India, and according to SelectUSA of the U.S. Department of Commerce, in 2015 (latest data available) Indian investment in the U.S. was the ninth fastest-growing. Expectations that Indian investment will continue to rise is supported by the data in this survey report, wherein 85% of respondents asserted the intention to invest more in the U.S. over the nextfiveyears. Figure 6: Do Indian companies engage in CSR initiatives in the U.S.? Yes 65% No 25% Unanswered 10% 09 Figure 7: Do Indian companies plan to make investments in the United States in the next five years? Yes 85% No 7% Not Sure 8% INDIAN ROOTS, AMERICAN SOIL
  • 12. Nearly 87% of the surveyed companies also indicated that in the next five years they plan to expand their local hires, with the states of Texas, New York, New Jersey, California, and Georgia cited as the most promising statesforfutureinvestments. Figure 8: Do Indian companies plan to hire more employees locally in the United States in the next five years? Yes 87% No 6% Not Sure 7% Conclusion As borne out in the preceding pages, the investment footprint of Indian companies in the United States has continued to grow andexpandinsubstantiveways.TangibleinvestmentsandjobcreationbyIndiancompaniesisnotonlyrevitalizingandadding dynamism to the local U.S., economy but is also helping to enhance the competitiveness of U.S. companies in the global marketplace. This year’s survey report illustrates that Indian roots are growing deeper as increased participation in CSR and R&D activities indicate that Indian companies are not only investing dollars in their adopted communities in terms of brick and mortar facilities, but they are in essence investing in the communities’ future by supporting long term social, educational, capacity building, and skilling programs. As the U.S.-India partnership grows and flourishes, drawing the two countries closer together in bonds of friendship, we expect that the Indian investment story in the U.S. will continue to be a positive aspect adding ballast toanalreadystrongfoundationinbilateralties. 10 INDIAN ROOTS, AMERICAN SOIL
  • 13. Survey Results Top 25 states with largest Indian investment 11 INDIAN ROOTS, AMERICAN SOIL
  • 14. New York 01 Total volume of investment ($) Number of jobs created Number of Indian companies present $1,569,786,086 5,135 25 NY 12 Indian companies in New York: Sector diversification Information Technology and ITES 56.00% Life Sciences, Pharmaceuticals 12.00% and Healthcare Energy 8.00% Financial Services 8.00% Manufacturing 8.00% Tourism and Hospitality 4.00% Other 4.00% INDIAN ROOTS, AMERICAN SOIL
  • 15. New Jersey Total volume of investment ($) Number of jobs created Number of Indian companies present $1,566,818,611 8,572 38 02 13 Information Technology and ITES 42.11% Life Sciences, Pharmaceuticals 31.58% and Healthcare Manufacturing 5.26% Energy 2.63% Telecommunications 2.63% Mining, and Materials 2.63% Financial Services 2.63% Other 2.63% Food and Agriculture 2.63% Design, Engineering 2.63% and Construction Automotive 2.63% Indian companies in : Sector diversificationNew Jersey INDIAN ROOTS, AMERICAN SOIL
  • 16. Total volume of investment ($) Number of jobs created Number of Indian companies present: $930,584,298 2,318 16 Massachusetts 03 14 Information Technology and ITES 68.75% Other 6.25% Manufacturing 6.25% Tourism and Hospitality 6.25% Design, Engineering 6.25% and Construction Life Sciences, Pharmaceuticals 6.25% and Healthcare Indian companies in : Sector diversificationMassachusetts INDIAN ROOTS, AMERICAN SOIL
  • 17. Total volume of investment ($) Number of jobs created Number of Indian companies present $542,421,564 6,749 29 California 04 Information Technology and ITES 51.72% Food and Agriculture 10.34% Design, Engineering 6.90% and Construction Manufacturing 6.90% Other 6.90% Life Sciences, Pharmaceuticals 6.90% and Healthcare Financial Services 3.45% Tourism and Hospitality 3.45% Telecommunications 3.45% 15 Indian companies in : Sector diversificationCalifornia INDIAN ROOTS, AMERICAN SOIL
  • 18. Total volume of investment ($) Number of jobs created Number of Indian companies present $435,000,000 534 2 Wyoming 05 16 Mining, and Materials 50.00% Information Technology 50.00% and ITES Indian companies in : Sector diversificationWyoming WV INDIAN ROOTS, AMERICAN SOIL
  • 19. Total volume of investment ($) Number of jobs created Number of Indian companies present $391,999,033 7,271 31 Texas 06 17 Information Technology and ITES 45.16% Energy 25.81% Other 6.45% Life Sciences, Pharmaceuticals 6.45% and Healthcare Manufacturing 6.45% Financial Services 3.23% Design, Engineering 3.23% and Construction Food and Agriculture 3.23% Indian companies in : Sector diversificationTexas INDIAN ROOTS, AMERICAN SOIL
  • 20. 18 Kentucky 07 Total volume of investment ($) Number of jobs created Number of Indian companies present $299,362,962 1,641 13 Information Technology 69.23% and ITES Manufacturing 15.38% Life Sciences, Pharmaceuticals 15.38% and Healthcare Indian companies in : Sector diversificationKentucky INDIAN ROOTS, AMERICAN SOIL
  • 21. Arkansas Total volume of investment ($) Number of jobs created Number of Indian companies present $298,850,000 1,091 8 08 19 Information Technology 62.50% and ITES Food and Agriculture 12.50% Other 12.50% Manufacturing 12.50% Indian companies in : Sector diversificationArkansas INDIAN ROOTS, AMERICAN SOIL
  • 22. 20 Georgia 09 Total volume of investment ($) Number of jobs created Number of Indian companies present $253,048,292 4,554 19 Information Technology 73.68% and ITES Manufacturing 10.53% Other 5.26% Design, Engineering 5.26% and Construction Life Sciences, Pharmaceuticals 5.26% and Healthcare Indian companies in : Sector diversificationGeorgia INDIAN ROOTS, AMERICAN SOIL
  • 23. 21 Illinois Total volume of investment ($) Number of jobs created Number of Indian companies present $195,701,669 3,802 19 10 Information Technology 63.16% and ITES Other 10.53% Energy 10.53% Life Sciences, Pharmaceuticals 5.26% and Healthcare Design, Engineering 5.26% and Construction Financial Services 5.26% Indian companies in : Sector diversificationIllinois INDIAN ROOTS, AMERICAN SOIL
  • 24. 22 Pennsylvania 11 Total volume of investment ($) Number of jobs created Number of Indian companies present $170,641,000 1,865 23 Information Technology 47.83% and ITES Life Sciences, Pharmaceuticals 26.09% and Healthcare Other 8.70% Manufacturing 4.35% Food and Agriculture 4.35% Energy 4.35% Automotive 4.35% Indian companies in : Sector diversificationPennsylvania INDIAN ROOTS, AMERICAN SOIL
  • 25. Michigan Total volume of investment ($) Number of jobs created Number of Indian companies present $146,769,333 2,098 21 12 23 Information Technology 47.62% and ITES Automotive 14.29% Design, Engineering 9.52% and Construction Manufacturing 9.52% Life Sciences, Pharmaceuticals 9.52% and Healthcare Other 4.76% Energy 4.76% Indian companies in : Sector diversificationMichigan Responses may not total 100% due to rounding. INDIAN ROOTS, AMERICAN SOIL
  • 26. 24 Missouri 13 Total volume of investment ($) Number of jobs created Number of Indian companies present $139,000,000 989 9 Information Technology 55.56% and ITES Life Sciences, Pharmaceuticals 22.22% and Healthcare Other 11.11% Energy 11.11% Indian companies in : Sector diversificationMissouri INDIAN ROOTS, AMERICAN SOIL
  • 27. Tennessee Total volume of investment ($) Number of jobs created Number of Indian companies present $102,656,000 779 11 14 Information Technology 54.55% and ITES Life Sciences, Pharmaceuticals 18.18% and Healthcare Other 9.09% Food and Agriculture 9.09% Automotive 9.09% 25 Indian companies in : Sector diversificationTennessee Responses may not total 100% due to rounding. INDIAN ROOTS, AMERICAN SOIL
  • 28. 26 Ohio 15 Total volume of investment ($) Number of jobs created Number of Indian companies present $74,407,203 3,188 17 Information Technology 64.71% and ITES Manufacturing 23.53% Other 5.88% Design, Engineering 5.88% and Construction Indian companies in : Sector diversificationOhio INDIAN ROOTS, AMERICAN SOIL
  • 29. North Carolina Total volume of investment ($) Number of jobs created Number of Indian companies present $63,572,000 3,992 14 16 Information Technology 71.43% and ITES Other 14.29% Design, Engineering 7.14% and Construction Life Sciences, Pharmaceuticals 7.14% and Healthcare 27 Indian companies in : Sector diversificationNorth Carolina INDIAN ROOTS, AMERICAN SOIL
  • 30. 28 Louisiana 17 Total volume of investment ($) Number of jobs created Number of Indian companies present $63,003,282 293 8 Information Technology 75.00% and ITES Life Sciences, Pharmaceuticals 25.00% and Healthcare Indian companies in : Sector diversificationLouisiana INDIAN ROOTS, AMERICAN SOIL
  • 31. 29 Virginia Total volume of investment ($) Number of jobs created Number of Indian companies present $37,883,760 1,868 16 18 Information Technology 75.00% and ITES Other 6.25% Telecommunications 6.25% Life Sciences, Pharmaceuticals 6.25% and Healthcare Manufacturing 6.25% Indian companies in : Sector diversificationVirginia INDIAN ROOTS, AMERICAN SOIL
  • 32. 30 Washington 19 Total volume of investment ($) Number of jobs created Number of Indian companies present $37,204,152 3,397 16 Information Technology 68.75% and ITES Manufacturing 6.25% Energy 6.25% Other 6.25% Design, Engineering 6.25% and Construction Life Sciences, Pharmaceuticals 6.25% and Healthcare Indian companies in : Sector diversificationWashington INDIAN ROOTS, AMERICAN SOIL
  • 33. 31 Oregon Total volume of investment ($) Number of jobs created Number of Indian companies present $25,000,000 558 12 20 Information Technology 58.33% and ITES Other 8.33% Food and Agriculture 8.33% Design, Engineering 8.33% and Construction Automotive 8.33% Energy 8.33% Indian companies in : Sector diversificationOregon INDIAN ROOTS, AMERICAN SOIL
  • 34. 32 Minnesota 21 Total volume of investment ($) Number of jobs created Number of Indian companies present $24,142,000 2,297 14 Information Technology 71.43% and ITES Other 7.14% Life Sciences, Pharmaceuticals 7.14% and Healthcare Energy 7.14% Aerospace and Defense 7.14% Indian companies in : Sector diversificationMinnesota INDIAN ROOTS, AMERICAN SOIL
  • 35. 33 Indiana Total volume of investment ($) Number of jobs created Number of Indian companies present $21,004,000 1,620 9 22 Information Technology 66.67% and ITES Energy 11.11% Other 11.11% Manufacturing 11.11% Indian companies in : Sector diversificationIndiana INDIAN ROOTS, AMERICAN SOIL
  • 36. 34 West Virginia 23 Total volume of investment ($) Number of jobs created Number of Indian companies present $20,000,000 186 5 WV Information Technology 60.00% and ITES Manufacturing 20.00% Energy 20.00% Indian companies in : Sector diversificationWest Virginia INDIAN ROOTS, AMERICAN SOIL
  • 37. 35 Maryland Total volume of investment ($) Number of jobs created Number of Indian companies present $14,920,000 803 14 24 Information Technology 57.14% and ITES Life Sciences, Pharmaceuticals 21.43% and Healthcare Other 7.14% Food and Agriculture 7.14% Design, Engineering 7.14% and Construction Indian companies in : Sector diversificationMaryland INDIAN ROOTS, AMERICAN SOIL
  • 38. Florida 25 Total volume of investment ($) Number of jobs created Number of Indian companies present $13,002,881 3,878 18 FL Information Technology 55.56% and ITES Life Sciences, Pharmaceuticals 16.67% and Healthcare Other 11.11% Manufacturing 5.56% Aerospace and Defense 5.56% Design, Engineering 5.56% and Construction 36 Indian companies in : Sector diversificationFlorida INDIAN ROOTS, AMERICAN SOIL
  • 39.
  • 40. Confederation of Indian Industry The Mantosh Sondhi Centre 23, Institutional Area, Lodi Road, New Delhi – 110 003 (India) T: 91 11 45771000 / 24629994-7 | F: 91 11 24626149 E: info@cii.in | W: www.cii.in The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society,through advisoryandconsultativeprocesses. CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process. Founded in 1895, India's premier business association has over 8,500 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprisesfromaround 250nationalandregionalsectoralindustrybodies. CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also providesaplatformforconsensus-building andnetworkingonkeyissues. Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affirmative action, healthcare, education, livelihood, diversity management,skilldevelopment,empowermentofwomen,andwater,tonameafew. The CII theme for 2017-18, India Together: Inclusive. Ahead. Responsible emphasizes Industry's role in partnering Government to accelerate India's growth and development. The focus will be on key enablers such as job creation; skill development and training; affirmative action; women parity; new models of development; sustainability; corporate socialresponsibility,governanceandtransparency. With 67 offices, including 9 Centres of Excellence, in India, and 11 overseas offices in Australia, Bahrain, China, Egypt, France, Germany, Iran, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 344 counterpart organizations in 129 countries, CII serves as a reference point for Indian industry and the international businesscommunity.