Wednesday, January 05, 2011

India is the net job creator for US

A common public perception that outsourcing of jobs to India is resulting in job losses in US, has been refuted by National Association of Software and Services Companies (Nasscom). The economic woes there are mostly the result of free trade agreements.
Mr Som Mittal, the president of the apex body of India’s information technology and business process outsourcing industry, said to the Seattle Times, “India is a net job creator for US companies, not the other way around. The Indo-US economic relationship benefits the American economy and its job market in many important and tangible ways".

US, is at present, a preferred destination for Indian investment. After United Arab Emirates, India stands at the second place in the list of fastest growing foreign investors in America. India has also become destination for American goods and services since the rapidly growing population demands various kinds of good and services. There has been an increase of total outward foreign direct investments by India while many other countries have even not been able to get out of recession.

Investments in US by the Indian companies have been increased by more than $20 billion over the last five years. Mr Mittal quoted the statistics collected by Ernst & Young. The investments have supported the creation of more than 65,000 American jobs. All this was brought about by a study commissioned by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Export deals by US business leaders have been signed with India which are of more than $10 billion amount. All these steps are expected to create 50,000 jobs in America.

Source: International Business Times

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