Mumbai: Even as India talks of attracting investments from mega American corporations, the United States is quietly working towards something contrary: The world’s richest country is trying to attract Indian SMEs (small and medium enterprises) to set up their shop as it seeks to create more jobs.
“Already 78 companies have set up their ventures in the United States as of March 31, 2014, with the help of India’s Exim Bank,” said Vinai Thummalapally, executive director of SelectUSA.
SelectUSA is an initiative taken by US President Barack Obama to attract investments into the United States from across the world. On Wednesday, it has signed an MoU with Exim Bank of India to promote investments in the the US by Indian SMEs. The total investments by 78 companies in America is just $100 million — a figure that may look too little, but the Obama administration feels that small companies generate large number of jobs.
Vinai Thummalapally, who is a Hyderabad-born person, said that SelectUSA’s and Exim Bank’s missions intersect when it comes to helping Indian businesses start and expand their operations in the US. He said one-third of the foreign investment that comes into the US is in manufacturing as this is the largest job creator. India is one of the fastest growing sources of foreign direct investment in the US with $9 billion and in 2011, Indian firms employed over 45,000 workers in the US and contributed to more than $1.9 billion to US exports.
Among the enterprises that have opened their office under SelectUSA is the Hyderabad–based Maqdoom Brothers, clothing designers and manufacturers who have been around for 100 years. Mr Thummalapally, said they have opened their office in Joliet near Chicago and added “they told us that this is their first step to a much larger manufacturing investment in the US.”
Others include Shri GovindarajaTextiles part of the Jayavilas Group in Aruppukottai who opened their US based operation in Eden, North Carolina and plan to invest more than $40 million and create 84 jobs over the next two years.
Meanwhile speaking at the CII meeting earlier, US commerce secretary Penny Pritzker proposed that the US could offer its know how and cutting edge technology to India in the field of infrastructure particularly in power generation for the 400 million Indians currently off the grid; manufacturing and creation of a consistent investment climate.
