$1.7 trillion FDI created 5 mn jobs in US

Foreign Direct Investment (FDI) in the United States exceeding $1.7 trillion in the last one decade has created more than five million jobs in the US, which on an average paid 30 per cent more than other jobs, an official report said Tuesday.

While Indian companies in recent years have increased their investment in the US, India does not figure in the list of top countries in the foreign direct investment list.

At present, relatively few countries invest in the United States, said the report issued by the Department of Commerce. In fact, 84 per cent of FDI into the US in 2010 came from or through eight countries: Switzerland, the United Kingdom, Japan, France, Germany, Luxembourg, the Netherlands, and Canada.

"Foreign direct investment in the United States is a critical dimension of our economy and one that holds great growth potential for high-paying American jobs," Acting Commerce Deputy Secretary Rebecca Blank said.

"By expanding the number of countries that bring business operations to the United States and encouraging further domestic business expansion, we can leverage foreign investment as a powerful engine for US economic growth and job creation," Blank said.

A temporary surge in FDI recorded in 2007 suggests there is untapped potential for increasing total foreign investment in the United States by expanding the number of countries that operate here.

Given the power of FDI as an economic engine and the quality of jobs it supports, there is great potential benefit from broadening and deepening foreign direct investment in the United States, the report said.

According to the report, FDI flows vary greatly year-to-year and generally follow the US business cycle.

FDI hit a low of $64 billion in 2003 and then surged to a historic peak of $328 billion in 2008.