Indo-US trade seen to touch $50 b

Releasing a report on “Direct Investments in the US by Indian Enterprises” jointly brought out by Ficci & Ernst & Young., she said India is the second fastest growing investor in the US, after the United Arab Emirates.

She said between 2004 and 2009 Indian companies invested US$5.5 billion in the US in green-field projects. In mergers & acquisition of companies in the US, Indian companies invested US$20 billion. The report reveals that there has been a pragmatic shift in the US-India trade and investment relationship. India has matured from the largest export destination to emerge as second-fastest growing investor in the US, after the UAE. In 2009 and current year so far Indian companies made 536 outbound acquisitions globally, of which 105 were in the US.

During the first quarter of 2010-11 ending June 2010, Indian companies completed 101 outbound acquisitions of which nearly one-fourth were in the US. The report reveals that since the economic downturn, India outward FDI has seen a decline from US$16.20 billion to US$10.30 billion.

However, the US emerged as preferred destination and it’s share has increased to 6.5 per cent in FY10 from 5.7 per cent in FY09, even though the number of transaction declined by 37 per cent. IT and IT Enabled Services, pharmaceutical and manufacturing sectors have been the most active over FY09, FY10 and first quarter of FY11. IT/ITeS accounted for most of the growth, with more than 40 per cent  of total number of deals in FY09 and 54 per cent of the total number of deals in FY10, the study shows.