India, the third fastest growing investor in the US

Indians are the third fastest growing foreign investors in the United States, a top Obama Administration official has said, acknowledging the positive contribution of India in the US economy at the time of recession.

"India is the third fastest growing foreign investor in the US," said Holly Vineyard, Deputy Assistant Secretary of Commerce for Africa, the Middle East and South Asia, at an event here on Monday.

Vineyard said Indian investment in 2008 was $4.5 billion but the investments in 2009 grew 60 per cent higher than investments in the previous year.

He was quoting from a yet to be published report by India US World Affairs Institute and the University of Maryland.

The report will soon be released by Congressman, Jim McDermott, Co-Chair of the Congressional Caucus on India and Indian-Americans, at a function organized by the East West Center, a Washington-based think tank.

The Joint study has found 372 acquisitions by Indian companies in the US between 2004 and 2009 worth $21 billion.

This has created an estimated 40,000 employments in the US. Giving preview of the report, the FICCI secretary general, Amit Mitra, said there were 127 green field investments worth $5.5 billion by Indian companies in the United States.

"So these are huge numbers that India is contributing to the US economy," Mitra said. "In contrast", the FICCI secretary general pointed out, "India was facing difficulties in attracting US investment in its infrastructure sector."

US needs to do more in the infrastructure sector, he said. "We have come here to tell the US government and businesses, 'get in there'."

To boost the US involvement in India, FICCI is following Track II policy, envisioned by the External Affairs Minister, S M Krishna, and the Secretary of State, Hillary Clinton when they meeting here earlier this month. The policy works on enhancing public private engagement in economic and strategic sectors in both the countries.

As part of Track II policy, FICCI signed a memorandum of understanding with the Council on Competitiveness. In the MOU, FICCI and the Council agreed to work together to accomplish projects that shared their mutual interests including the development of innovative human capital and sustainable development.