America
Opportune time for US firms to engage with India: Report
It is an opportune time for
US companies to scale up their engagement with Indian businesses at home
as well as through partnerships in India, leveraging economic
multipliers that exist on both sides, an industry report has said.
"To
foster a positive investment environment further, a Bilateral
Investment Treaty (BIT) can provide confidence and protection to
investors from any discriminatory measures," the report by the
Federation of Indian Chambers of Commerce and Industry and Ernst &
Young said here Saturday.
It stated a total of 268 outbound
acquisitions had been made by the Indian companies between October, 2012
and December, 2014, of which 71 were made in the US, with a cumulative
disclosed value of $2.9 billion, despite global and domestic economic
turbulence.
"The actual investment in the US would be even
greater as the transaction value is available for only 22 transactions
out of a total 71 deals. It is a matter of great pride that Indian
companies are able to contribute to the US economy's export and tax
revenues, social security contributions, capital growth and
productivity," the report said.
The report highlighted that a
high rate of innovation, abundance of natural resources, presence of a
large consumer market in the US, as well as the strong US-India
relationship, made the US a highly attractive destination for Indian
businesses.
The key drivers of India's outbound investments to
the US are advanced technologies, natural resources, expanding existing
markets and regulatory impetus and US as a hub to expand business in the
Americas.