FIRMS ALSO CREATE IN AMERICA: US OFFICIAL
New Delhi, January 12, 2008 (IANS)
was necessary to inform Americans that Indian companies were also
creating jobs and not just offshoring them to distant shores for
lower costs, a top US Commerce Department official said here Thursday.
Indian companies have been steadily employing more and more Americans,
with 2005 figures of the US Department of Commerce recording 12,000
of them employed by Indian firms.
at an interactive meeting with members of the Federation of Indian
Chambers of Commerce and Industry (Ficci), US Assistant Commerce
Secretary for Market Access and Compliance David Bohigian said most
of the attention in the US presidential election campaign in terms
of trade was on the fear of China, low-cost foreign labour displacing
American jobs and offshoring to India.
have to make known that Indian companies are investing too... It
is not just an offshoring story," he said, adding it was "important
to highlight that Indian and American companies are creating jobs".
to US government statistics, India accounts for only about 1% of
foreign direct investment (FDI) flows into the US from Asia, but
is the fastest growing country in terms of average annual growth
of investment at over 70% from 2002 to 2006.
Indian business chambers also hope to offset any possibility of
the US presidential election campaign raking up the issue of offshoring
by taking pro-active measures. "We are planning a road show
of 15 Indian companies to travel to 10 US cities between February
and September to target key lawmakers to show that Indian companies
are creating jobs," said V.K. Topa, adviser to the Ficci secretary
senior American official was in India to woo investments - a rather
new policy programme of the Bush administration. Earlier, the US
administration did not have a policy to actively join the international
fray to woo foreign investment, with the country accounting for
a peak of over a quarter of global FDI inflows in the late 1990s.
But 9/11 changed the scenario, with capital inflows dropping down
to nearly 7% in 2003, fuelled by visa restrictions and also domestic
fears regarding foreign investment in strategic sectors.
China and to a less extent India garnering a large share of FDI,
the US launched the "Invest in America" initiative in
March 2007 to attract foreign investment, providing services on
how to navigate the regulatory mechanism and contact the right people
in Washington DC.
terms of visas, he pointed out that the backlog of visa applications
had come down significantly, adding India accounts for the largest
number of work and student visas to the US.
admitted that the American public was still apprehensive over foreign
investment, collating it "incorrectly" with job displacement.
He pointed out that a Pew global study of 47 countries had found
Americans to be the most negative about trade, which contradicts
statistics on the benefits accrued from foreign trade.
family of four is benefited to the tune of $10,000 from foreign
investment," he said, adding that a job in a foreign company
is one third higher in terms of salary than that in a domestic company.