Category: Business

Apple Inc. ordered to pay $234 million to BITS Graduates

Ajay GhoshBusiness, Science & Technology 0

Gurindar Sohi and Terani Vijaykumar, both electrical and electronics engineering graduates of Birla Institute of Technology and Science, Pilani, were part of the four-member WARF team that developed the chip technology used without permission by Apple.

Apple Inc. has been ordered to pay $234 million to the intellectual property arm of Wisconsin University for using patented technology developed by its team, including two Indian-American engineers. The award by a federal jury in Madison on Friday was about $165 million less than the amount sought by Wisconsin University Alumni Research Foundation, according to the Wisconsin State Journal.

WARF sued Apple in January 2014, claiming that Apple infringed on one of WARF’s patents in creating a processor for its popular mobile devices, starting with the iPhone 5S in 2012. U.S. District Judge William Conley, who presided over the trial, complimented the lawyers on their professionalism and spoke to Wisconsin University-Madison computer sciences’ Prof. Sohi, who led the WARF technology team, seated in the courtroom.

“For Dr. Sohi, I hope you felt that your invention was vindicated,” Conley was quoted as saying. “This is a case where the hard work of our university researchers and the integrity of patenting and licensing discoveries has prevailed,” said Carl Gulbrandsen, managing director of WARF.

Apple attorneys declined to comment, referring questions to the California company’s public relations office, the Journal said. But spokesperson Rachel Tulley said Apple would appeal the verdict.

India to be in Top-3 pharma manufacturing countries by 2020: Study

Ajay GhoshBusiness, Health 0

As the TechSci Research Report released here today India is expected to be in top three pharmaceutical manufacturing countries with a turnover of $55 billion by 2020. The report was released at the Assocham and Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers conference on intellectual property rights (IPR) in pharmaceuticals in Ahmedabad on Wednesday.

Speaking at the event, Harish Padh, vice-chancellor, Sardar Patel University said that though pharma has matured till implementation of new IPR Regime in 2005, diagnostic and medical devices are the sectors that are being negatively impacted by implementation of new IPR Regime.

He also highlighted that India is expected to be in top three pharmaceutical manufacturing nations in the world. “However, to ensure that full potential of the pharmaceutical industry be realised, innovation must be allowed to flourish and the IPR rights must be properly recognised, respected and rewarded. This will add speed to the wheels of progress of nation ushering in a new paradigm,” Padh said.

Experts here felt that the new paradigm of IP protection brings for the country an excellent opportunity to further stimulate the biopharmaceutical industry creating thousands of new, high value jobs, while paving the way for newer avenues of foreign direct investments.

Kiran Kalia, director, National Institute of Pharmaceutical Education & Research, Ahmedabad said, “The enactment of the Patent (Amendment) Act, 2005 is viewed as a milestone which substantially changed the protection regime in India. However, patent disputes have regularly arisen in India, recently in the context of compulsory licensing.”

While the Union governement has been supporting SMEs in pharmaceutical manufacturing through developing clusters in various parts of the country, it has also approved setting up of six new pharmaceutical parks with an estimated investment of $26.9 million.

Wal-mart Paid Thousands of Bribes in India: WSJ

Ajay GhoshBusiness 0

America’s multinational retail corporation Wal-mart is suspected to have paid bribes worth millions of dollars in India, according to a report. The Wall Street Journal said Wal-mart’s “suspected bribery” unearthed in India involves thousands of small payments to low-level local officials to help move goods through customs or obtain real-estate permits.

“The vast majority of the suspicious payments were less than $200, and some were as low as $5, the people said, but when added together they totalled millions of dollars,” the daily said. In 2013, Wal-mart shelved plans to open retail stores in India by severing a joint venture with Bharti Enterprises Ltd and instead decided to become solely a wholesaler, the report said.

Wal-mart, which was pushing the previous Manmohan Singh government for permits to open a store, also lobbied with the U.S. Congress in this regard, Congressional disclosure reports have said in the past few years. According to the report, Wal-mart’s massive bribery efforts is unlikely to bring in any penalty under the provisions of the U.S. Foreign Corrupt Practices Act because its Indian operation did not yield any profit. There was no immediate response from Wal-mart’s corporate headquarters here on the Wall Street Journal’s report.

India climbs one rank with a 32% sprint in brand value

Ajay GhoshBusiness, Finance/Economy 0

India’s nation brand value has in 2015 increased by a whopping 32 per cent to $2.14 trillion, compared with $1.62 trillion last year, shows a report by London-based Brand Finance, a leading independent brand valuation and strategy consultancy. Not only has India’s rate of increase been the highest among the top 10 by brand value, it has also helped the country improve its global ranking by a notch to seventh.

Only three Asian nations – China, India and South Korea – figure among the top 20 most valuable nation brands. Even as China has maintained its second position, it has lost one per cent of its value over a year to $6.3 trillion in 2015. South Korea has improved its ranking to 12th from 17th with a 10 per cent increase in value to $1.1 trillion.

Meanwhile, in a classic case of how one company’s mess can hurt a country, the recent crisis faced by automaker Volkswagen has not only affected Germany’s brand value but also cost it its position as the world’s strongest nation brand.

In addition to a four per cent erosion in brand value to $4.2 trillion, Germany, the third-most-valuable nation brand, has been replaced in the strongest nation brand pecking order by Singapore.

With its intolerance for corruption, generous wages for public officials to discourage graft, heavy tax on cars leading to less congestion and good public transport, and a high-quality education system, Singapore, which has a nation brand value of $412 billion, is now the strongest nation brand.

India climbs one rank with a 32% sprint in brand valueAccording to David Haigh, chief executive officer, Brand Finance, a nation brand is one of the most important assets for any state in a global marketplace, “encouraging inward investment, adding value to exports and attracting tourists”.

Though the US remains the most valuable nation brand in Brand Finance’s 2015 edition of Nation Brands report, the country’s image as the ‘Great Satan’ in Iran will affect the ability of its firms to export into Iran. The report says: “Those with a neutral and internationalist branding, such as Apple, should be largely unaffected. But the more ‘all-American’ brands like Coca-Cola might struggle to overcome negative perceptions.”

In the case of the UK, there are even stronger negative associations with Iranians, many of whom resent the UK’s historical political interference in their country. Germany and France, by contrast, were faster to reach out and had a more established presence in Iran before sanctions were imposed on that country. “France’s Peugeot was the market leader in the Iranian automobile market. However, its perceived abandonment of the country might mean other European firms are better placed to profit,” says the report.

Brand Finance measures the strength and value of 100 countries using a method based on the royalty-relief mechanism employed to value large companies. The five-step approach includes preparing a brand strength index on the basis of goods and services, investment and society. The first is sub-divided into governance, market and tourism (for investment, tourism is replaced by people and skills).

It emphasises a six-step approach by governments to improve the nation brand through appraisal, macro and micro image, consistent and focused vision, brand strategy, market strategy and execution. India’s “Incredible India” slogan, used for tourism promotion, has worked well as “an umbrella brand”, with more targeted and detailed campaigns appealing to the different audiences. “Who doesn’t want to discover something incredible? An overarching slogan or campaign could be used across the board,” says Courtney Fingar, editor-in-chief of fDi Magazine, which has partnered Brand Finance for this year’s Nation Brands study.

Interestingly, Iran tops the list of best-performing nation brands; the value of its nation brand value has increased 59 per cent over a year ago to $159 billion. Iran is followed by Cameroon, Tanzania, Kenya and Zambia in high rates of increase. The report says Hassan Rouhani’s moderate approach is slowly shifting the international perception of Iran’s potential.

“The conflict on its doorstep and the Sunni-Shia divide will remain an impediment to trade and investment locally but with a market of 77 million people, vast hydrocarbon reserves and a highly educated population, Iran certainly has a receptive audience globally,” says the report.

Ukraine and Russia, rivals in political arena, are together in the worst-performing nation brand category, at first and third spots, respectively. Russia’s brand value, at $810 billion, is more than 60 per cent lower than India’s.

81 companies sign pledge on climate change: US

Ajay GhoshBusiness, Environment 0

The White House said that a total of 81 companies have signed a pledge to reduce greenhouse gas emissions as part of the country’s efforts to combat climate change. Among the companies signing the American Business Act on Climate Pledge are Coca-Cola, Apple, Intel, IBM and Walmart, Xinhua reported.

The White House said in a statement last week that these companies have operations in all 50 US states, employing more than nine million people and representing more than $3 trillion in annual revenue, with a combined market capitalisation of over $5 trillion.

While voicing expectation for a strong outcome from the upcoming UN climate talks in Paris in December, the companies agree to reduce their emissions, increase low-carbon investments, deploy more clean energy, in addition to other actions.

The White House launched the American Business Act on Climate Pledge in July, with 13 US companies such as Microsoft committing a total of $140 billion in new low-carbon investments and more than 1,600 megawatts of new renewable energy at that time.

An independent consortium of long-term investors, created in a White House clean energy investment summit in June, on Monday, also announced its first round of investments totalling $1.2 billion through an “aligned intermediary”, which will be formally launched and branded in mid-2016.

US cancels plans to allow Arctic oil drilling

Ajay GhoshBusiness, Environment 0

The US government has cancelled plans to allow oil drilling along the Arctic coasts of Alaska for the next two years, the interior department announced. The decision signifies the elimination of offshore lease sales for oil drilling rights in the Chukchi and Beaufort Seas, and comes less than a month after the Shell oil company decided to suspend its exploration for crude and natural gas on the Alaska coast, EFE reported on Saturday.

On September 28, the Anglo-Dutch oil company announced the suspension of its plans in Alaska due to some “disappointing” results from an important oil well in the sea off Chukotka, that unfortunately coincided with a time when the price of crude was at its lowest in recent years.

“Shell will now cease further exploration activity in offshore Alaska for the foreseeable future,” the oil company said at the time. “This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska.”

“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” interior secretary Sally Jewell said.

The Barack Obama administration also decided to refuse the requests of Shell and Norway’s Statoil to move to a later date the lease contracts in the Arctic they obtained from the government of George W. Bush.

The two offshore lease sales that the US had planned for the next two years were the one in 2016 for drilling rights in the Chukchi Sea and the other in 2017 for the Beaufort Sea. Despite the hold on bidding during the next two years, the interior department still has plans for possible lease sales for drilling rights in the Arctic for the years 2020 and 2022. The final decision in those two cases will be up to the US president elected in 2016. Meanwhile, environmentalists have opposed all plans to drill for oil in the Arctic, warning that such operations could harm polar bears and seals.

SriLankan Airlines flies the Windies to the Island

Ajay GhoshBusiness 0

Colombo October 1, 2015: National Carrier SriLankan Airlines flew the star-studded West Indies cricket team to the island, today. Arriving from London, the cricketers were warmly welcomed by the SriLankan staff at Bandaranaike International Airport. The visitors are scheduled to play 2 test matches, three one day internationals and two T20 matches against the home side starting from October 14, 2015.

The SriLankan Airlines office in the USA was instrumental in making the national carrier the team’s choice of travel for their tour of Sri Lanka, which is incidentally after a lapse of three years. The West Indians were here last in 2012 to participate in the T 20 World Cup.

SriLankan Airlines flies the Windies to the Island
SriLankan Airlines flies the Windies to the Island

Google, Microsoft End Patent Litigations

Ajay GhoshBusiness, Science & Technology 0

Microsoft and Google have agreed to bury all patent infringement litigation against each other, the companies announced last week, settling 18 cases in the United States and Germany. The companies said the deal puts an end to court fights involving a variety of technologies, including mobile phones, Wi-Fi, and patents used in Microsoft’s Xbox game consoles and other Windows products. The agreement also drops all litigation involving Motorola Mobility, which Google sold to Lenovo last year while keeping its patents.

However, as Microsoft and Google continue to make products that compete directly with each other, including search engines and mobile computing devices, the agreement does not preclude any future infringement lawsuits, a Microsoft spokeswoman confirmed.

The agreement brings an end to legal battles over the use of technology in mobile phones and Wi-Fi and of patents covering games for the Xbox video-gaming console and Windows products, Efe cited the two companies as saying in a joint statement. “Google and Microsoft have agreed to collaborate on certain patent matters and anticipate working together in other areas in the future to benefit our customers,” the companies said without disclosing financial terms.

The legal battles began in 2010, when Microsoft accused Motorola, later acquired by Google, of non-compliance with its obligation to allow companies to license patents covering wireless networking and video technologies at a reasonable price. Google sold Motorola Mobility to Lenovo last year but kept some assets, including the majority of its patents.

Valuation of India’s top 30 software firms crosses $10 billion: Report

Ajay GhoshBusiness, Finance/Economy 0

The total valuation of India’s top 30 enterprise software product companies is touching $10.25 billion, pushing up the value of an index compiled by software products think tank iSpirt by 20 per cent. “We see a steady growth in this space and we expect it to continue to grow nicely. The data tells us that the ecosystem is accelerating,” said Dev Khare, managing director at Lightspeed India Partners Advisors, who helped put together the report for iSpirt. The report, based on an index called iSPIxB2B comprising top 30 software product companies in India and their valuations, said that the number of employees at these companies have also grown by nearly 18 per cent to over 21,200 employees.

“There has been a notable increase in the enterprise value per employee, showcasing shift from services heavy to product-heavy offerings,” said the report. Khare said the growth in the number of enterprise software companies is due to three key reasons—the growing domestic market, easier access to global customers via the internet and a growing breed of entrepreneurs who have deeper understanding of software products and industries.

“There is a new class of entrepreneurs coming in with a very close finger on the pulse of the needs today and creating solutions for that,” said Khare. An overwhelming majority of the companies (80 per cent) including the likes of cloud telephony company Knowlarity, customer support software maker Freshdesk and ad tech company InMobi are focused on the global market while the rest are looking to tap into the Indian market.

About 67 per cent of the companies are domiciled in India but since 2009, majority of Indian B2B companies have started incorporating in the US and Singapore, the report noted. “The government is trying to introduce policies which makes it more conducive for companies to remain domiciled in India,” said Khare. In June, India’s market regulator Sebi said it will launch an alternative trading platform for internet startups with relaxed norms for listing.

Most of the companies in the index have bootstrapped themselves without institutional financing in the early stage. Nearly 43 per cent are bootstrapped and most institutionally-funded companies got growth financing, rather than early-stage venture capital financing, said the report.

Companies from Delhi dominate the index followed by Bengaluru, Chennai, Pune, Mumbai and other cities. Nearly 40 per cent of the companies in the index sell products across different enterprises but the rest are focussed on financial services, retail, media and travel, the report said.

U.S. Congress Lets ‘Discriminatory’ Outsourcing H-1B Fee Lapse

Ajay GhoshBusiness, Finance/Economy, Travel 0

Indian companies and high-skilled Indian American workers have been a major force that utilizes the much sought-after H-1B worker visa in the United States. The “discriminatory fee on processing the visa application has been a bone of contention between the US and the many companies that use the visa for its employees, who get to fill the vacuum in the US economy. Passed on August 10, the law contains provision to hike H-1B and L-1 Visa fee per application by USD 2,000 and USD 2,250 respectively for qualifying firm; which mainly targeted Indian IT companies.

In a breather for Indian IT firms, the “discriminatory” USD 2,000 H-1B fee mostly imposed on them has now lapsed in a Republican-majority U.S. Congress.  The charges, often called outsourcing fee, had forced Indian IT companies in the last few years to pay millions of dollars towards protecting the U.S.-Mexican border from illegal immigration.

Indian firms had described the fee on highly-qualified IT professionals coming to the U.S. on a H-1B visa as “discriminatory.”  The legislation with regard to a USD 2,000 fee on H-1B visas for companies having more than 50 per cent of its employees oversees was adopted by the US Congress in 2010 mainly at the instance of a group of lawmakers led by Senator Charles Schumer.

The duration of law was extended from four to five years under James Zadroga 9/11 Health and Compensation Act of 2010 to provide healthcare and financial compensation for the firefighters and other ‘First Responders’ who helped out in the aftermath of the 9/11 attack.

In a report released last month, NASSCOM said Indian tech industry contributed an estimated over USD 375 million during this period to the U.S. Treasury including helping America secure its borders.  In a recent interview, NASSCOM president R. Chandrashekhar described the fee as unjustified.  “It had nothing to do with the IT industry. It was applied in an inequitable way, which specifically targeted Indian companies,” he said, adding that he would welcome any move to eliminate the fee.

The Congress can still come up with a legislation to reinstall the discriminatory H-1B fee, which lapsed yesterday night, Congressional sources said.  However, Institute of Electrical and Electronics Engineers (IEEE-USA) in a statement criticised the U.S. Congress for the lapse of the H-1B fee.

USA Today Reports of India Displacing China as Silicon Valley’s Next Frontier

Ajay GhoshBusiness, Finance/Economy 0

Silicon Valley on the west coast of the United States is filled with new and innovative ventures that look to the future and is known for its technological inventions that have transformed the world. There are several Indian Americans who have made new innovations that contribute to the transformation of the world and the way people perceive the future. Silicon Valley, in the southern San Francisco Bay Area, is home to hundreds of start-ups and global technology companies, with Google, Apple and Facebook among the most prominent.

Affirming the contributions of the Indian tech giants, the popular USA Today said last week in a news dispatch from San Francisco, “China may be a Silicon Valley obsession, but India increasingly is in the conversation and may soon displace its Asian neighbor as tech’s next big frontier.”

The first Indian Prime Minister of India to visit California in more than three decades, Modi over the weekend spent several hours at the headquarters of iconic companies such as Tesla, Google and Facebook. He also had interactions with the top CEOs including Tim Cook of Apple, Satya Nadella of Microsoft and Google’s newly-appointed Indian-origin CEO Sundar Pichai.

“The near-future was on full display last week,” USA Today said referring to Modi’s meetings in the Silicon Valley. “The Facebook of India is Facebook. The Google of India is Google,” Beerud Sheth, CEO of Teamchat, a communications app with employees in India and the U.S., was quoted as saying.  “In China, those services are banned,” he said.

Modi’s Visit Strengthened Indo-U.S. Bonds: American Lawmakers

The historic visit by the Prime Minister of India, Narendra Modi to the United States last month has strengthened the bonds between India and the US, the two largest democracies of the world and opened up new avenues of co-operation, top American lawmakers have said.

“There are many different areas and sectors where the U.S. and India’s growing friendship will cover mutually beneficial ground. Prime Minister Modi’s second visit to the U.S. has allowed us to continue to strengthen those bonds and explore new opportunities for us to work together,” Democratic Congresswoman from Hawaii, Tulsi Gabbard, said.

Gabbard is the first ever Hindu Congresswoman elected to the U.S. House of Representatives. She was among the top American lawmakers to have met Modi and attended his address to the community at SAP Center in San Jose, California. During her meeting with Modi, she and other members of Congress discussed plans to build U.S.-India relations and promote technology partnerships. “Prime Minister’s 2-day tour of Silicon Valley included meetings with technology executives who offered their ideas and assistance in bringing India fully into the digital world,” she said.

Congresswoman Loretta Sanchez, who also met Modi in San Jose, said Modi’s visit to Silicon Valley is symbol of the collaboration and cooperation between the US and India. “Innovation and entrepreneurship are values that both of our countries excel at and serve as a model for,” he said. Among the members of Congress who attended the event were the Minority Leader Nancy Pelosi; Ed Royce, Chairman of the House Foreign Affairs Committee; Ami Bera and George Holding, co-chairs of the Congressional Caucus on Indians and Indian Americans; Eric Swalwell; Mike Honda and Jim McDermott.

Congressman Matt Salmon said the India and the U.S. were natural partners. “Our growing cooperation on issues like counter-terrorism, peacekeeping, and maritime security is a positive development for the region and the world,” he said. “At the same time, our economic and commercial ties have not kept pace with our deepening political ties,” he said.

“I am pleased to support the elevation of commercial issues in the recently concluded first U.S.-India Strategic and Economic Dialogue and Prime Minister Modi’s visit to the U.S., where he heard ideas first-hand from entrepreneurs and business leaders in Silicon Valley on how we might advance our economic relationship,” Salmon said.

Following her meeting with Modi over the weekend, Congressman John Garamendi said that he raised the concerns of about the treatment of religious and ethnic minorities in India with the Prime Minister. He is Sikh Caucus Co-Chair. “I appreciate that Prime Minister Modi gave me the opportunity to discuss these critical issues. Rest assured that he knows where I stand and that the message of my constituents was heard loud and clear,” he said.

Indra Nooyi, Shobhana Bharatia Receive USIBC Global Leadership Award

Ajay GhoshBusiness, Finance/Economy, Profiles 0

PepsiCo chairman Indra Nooyi and Hindustan Times Group chairperson Shobhana Bharatia were honored with the 2015 Global Leadership Award by the U.S. India Business Council Sept. 21 at its annual gala for their commitment to driving a more inclusive global economy and their roles as women leaders. U.S. Vice President Joe Biden and Secretary of State John Kerry were among those who spoke at the gala.

Noting that USIBC plays an important role in strengthening the India-U.S. relationship, Nooyi said there are tremendous opportunities ahead to work together in new ways that capitalize on their collective strengths, paving the way to shared prosperity.

In other news, a venture capital fund backed by Reliance Industries Ltd. and a United States-based technology firm have signed an agreement to bring cutting-edge software technologies to India. Reliance-backed GenNext Ventures and Ecorithm’s partnership was announced on the sidelines of the inaugural India-U.S. Strategic and Commercial Dialogue.

Ecorithm’s powerful suite of technologies can be applied to build systems and various other enterprise solutions to improve operations, optimize systems, and minimize energy use, a media release said.

“As we bring Ecorithm into India, we are keen to deploy the technology to optimize the energy efficiency of our buildings and raise the standard of environmental design and operation for buildings and enterprises to global levels,” said Vivek Rai Gupta, managing director of GenNext Ventures. Asserting that India offers immense opportunities, External Affairs Minister Sushma Swaraj sought investments from United States industry leaders in public and private sectors.

In her address at U.S. India Business Council’s 40th annual gala Sept. 22, Swaraj said U.S. businesses are “best placed” to make their business decisions. “But it would help if I underline here the scale of India’s economic ambition and the size of economic opportunity that it represents for both our countries,” she said.

“We have plans to boost urbanization, and we are determined to provide affordable power and housing for all. We want to connect manufacturing in India with global supply chains… to develop product-based and service-based industrial and governance platforms around Digital India,” she said.

All of these initiatives and plans present commercial and business opportunities for U.S. industries to partner with India’s public and private sectors for a “win-win outcome,” the minister said. Meanwhile, John T. Chambers, executive chairman of Cisco, has been elected as the new chairman of the U.S. India Business Council.

India to become the fastest-growing emerging market this year: Goldman Sachs

Ajay GhoshBusiness 0

“We forecast India’s potential growth could rise to 8 per cent over the period FY16-20 from 7 per cent in FY12-15, under the new GDP series, based on bottom-up factors and structural reforms,” Goldman Sachs said on Monday, September 21st, 2015. As per the firm, India is likely to become the fastest-growing emerging market this year and its potential growth could rise to 8 per cent over the next five years driven by Technology, gains in Education and Ease of doing business due to less red tape,

Terming these three factors as TEE’s, the global brokerage firm said these could be the key drivers of growth and can contribute 3.6 percentage point to GDP growth annually. Moreover, in a faster reform scenario, India’s potential growth could rise to 9 per cent over this period due to reforms in labour, infrastructure and education, it said.

“With the government focusing its efforts on improving the business climate, we think that micro conditions could see an improvement in contribution to GDP growth over the period,” Goldman Sachs Chief India Economist Tushar Poddar said in the research note.

“The areas in ease of doing business where the brokerage expects some improvement are dealing with construction permits, getting electricity, and registering property due to a big push by the government to move these permits online, as well as resolving insolvency due to a new bankruptcy code, expected in FY16,” Poddar added.  The report further noted that it has taken more time in India for each factor of productivity to affect the economy, while in China, every variable has had a faster impact.

Urbanisation has contributed to growth twice as fast in China compared to India, and in agricultural productivity it was three times as fast. Goldman Sachs said that by 2020, India’s economy could gain over 300 million more internet users and 50 million more high-school graduates.

It is already adding 200 thousand bank accounts every day, and nearly 800 government services have moved online, reducing red tape. These changes can allow the economy to leapfrog a generation of creating physical infrastructure in retail, banking, and government services, and lead to a jump in productivity, the report said. The report, however, cautioned that there are several caveats to our forecasts for potential growth. First, the baseline forecasts are predicated on a set of reforms playing out, as discussed above.

Clearly, if they were not to play out, then the growth potential would be reduced. India will likely add more people to its labour force over the next decade than any other country, it said.

Over the next few years, large-scale capex in manufacturing may be constrained due to weak global demand, as well as local impediments.  “We think it is more likely that services will drive economic growth and jobs, and this can play to India’s strengths,” Poddar said.

India to join UN-based ‘Better Than Cash Alliance’

Ajay GhoshBusiness 0

India is joining the UN-based ‘Better Than Cash Alliance’, which promotes transition from cash to digital payments to reduce poverty and drive inclusive growth, the government said today.

“The new partnership with the Better Than Cash Alliance, made up of governments, companies, and international organisations, is an extension of Indian government’s commitment to reduce cash in its economy,” the Finance Ministry said in a statement.

India joins the Alliance for digitisation of payments to achieve financial inclusion and to share success stories from PMJDY, the world’s largest financial inclusion programme, the statement said. Under PMJDY, in one year, about 180 million new accounts have been opened, with deposits totaling more than USD3.4 billion (223 billion Rupees).

The announcement has come ahead of United Nations Special Summit in New York, where Prime Minister Narendra Modi along with other world leaders will launch Sustainable Development Goals (SDGs). Commenting on the development, Better Than Cash Alliance Managing Director Ruth Goodwin-Groen said that India’s leadership and progress are inspirational for countries around the world.

The Better Than Cash Alliance is a partnership of governments, companies, and international organisations that accelerates the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.

NYC Taxi and FHV Drivers Rally at NYS Governor’s Office to Protect Full Time Jobs

Ajay GhoshBusiness 0

Taxi drivers are taking to the streets to demonstrate against “Ubernomics,” a business model predicated on turning full-time driving jobs into part-time gigs, monopolizing service by flooding the streets and overtaking the heavily regulated taxi industry through “disruption,” and ultimately bringing in the driverless car to replace drivers altogether. In cities with legions of Uber cars, drivers report massive loss of income, both for taxi drivers and Uber drivers themselves. Earlier in the summer, Uber Chief Strategist David Plouffe said “the vast majority of Uber drivers have another job and their income from driving Uber is supplemental.” Professional taxi drivers say, what about the full-time jobs that have existed for generations?

“This income is not supposed to be supplemental. It’s the primary income for a quarter-million workers in this country. Uber has set everyone on a vicious race to the bottom where no worker wins,” said Bhairavi Desai, Executive Director of the New York Taxi Workers Alliance.

Uber and other App companies legislate the business model through state-wide laws that allow them to dispatch “on-demand” directly to non-regulated private motorists with personal cars. As a “Transportation Network Company” (TNC), they win special explicit exemptions from all laws governing taxis and for-hire service, including commercial insurance, commercial registration and inspections, vehicle standards, driver security background checks, tax requirements, and compliance with Americans with Disabilities Act (ADA.) There are also no protections against price gouging, or requirements for customer service.

Despite Uber and Lyft’s failed attempts over the past several years to pass TNC legislation in NYS, drivers say they fear the outcome of the Governor’s public pledge to support Uber and bring it across the state. “Since Uber doesn’t believe it needs to follow the same rules as taxis, the only other way it would be in upstate is as a TNC,” said Beresford Simmons. “Drivers in Buffalo are going to be swarmed in traffic during all the busy times, like rush hour and weekend nights. And when the work dries up, all those private cars are naturally going to enter the City where the work is. Whether NYC is in the law or not, we’ll be squeezed. And none of us can afford to lose more.”

With no cap on the number of TNC vehicles, cities like San Francisco have as many as 30,000 private cars competing for fares in a city served by 3,000 regulated taxis. Drivers have reported losing as much as 70% of their income, while the city is now plagued with the second worst traffic congestion in the country.

The laws also explicitly exempt drivers from employee classification, pre-empting state laws that otherwise have classified similarly dispatched black car and car service drivers as employees for decades.  Cities with strong regulated taxi and for-hire service would stand to lose significant revenue from taxes and fees, but city regulators would be precluded from banning such cars as the state would trump their authority.  There are also no limits on the number of vehicles.

Many states have defeated such measures and activated heavy enforcement to stop Uber’s illegal entrants into local markets. Most recently, Philadelphia seized dozens of cars and fined Uber $300,000. Countries across Europe and Asia have banned Uber due to its anti-regulation stance and Uber CEOs in Paris face criminal charges. Taxi and For-Hire-Vehicle Drivers in New York City urge Governor Cuomo to stand up to Uber and say no to TNCs.

India-US CEO Forum to hold meeting next month to improve economic ties

Ajay GhoshBusiness 0

The India-US CEO Forum would hold its next meeting here on September 21 during which top business and government leaders from the two countries will discuss efforts to improve commercial and economic ties, an official announcement said last week.

During the Forum, CEOs from India and the US will have an opportunity to provide joint private sector recommendations directly to high-level government officials from both countries that address economic challenges in several key areas including trade and investment, said the Department of Commerce.

The meeting will also aim at fostering innovation; developing a skilled workforce; and enabling rapid and secure movement of goods, it said. The US Commerce Secretary Penny Pritzker, along with Caroline Atkinson, Deputy Assistant to President and Deputy US National Security Advisor for International Economics, serve as the US government co-chairs for the US-India CEO Forum.

American CEOs selected for this year’s forum include Ajay Banga, President and CEO of MasterCard; Mary Barra, CEO of General Motors; Sanjay Bhatnagar, President and CEO of WaterHealth International; Shantanu Narayen, President and CEO of Adobe Systems and Indra Nooyi, Chairman and CEO of PepsiCo.

Michael Burke, Chairman and CEO of AECOM Technology Corporation; Ahmad Chatila, CEO of SunEdison, Inc; David Cote, Chairman and CEO of Honeywell International Inc. who is also the Forum Co-Chair; Dinesh Paliwal, Chairman, President and CEO of Harman International Industries; Paul Jacobs, Executive Chairman of Qualcomm, Inc. are among others selected.

US Unveils Visa Modernization Initiative

Ajay GhoshBusiness, Travel 0

The US Government has unveiled a proposal designed to streamline various immigration procedures, including the process of applying for a T visa – for victims of human trafficking – or a U visa – for victims of crime and domestic violence, which has been applauded by Suman Raghunathan, Indian American executive director of South Asian Americans Leading Together.

DHS will now allow victims of domestic violence to self-petition for a permanent visa and simultaneously apply for work authorization. The Obama administration unveiled a proposal July 15 designed to streamline various immigration procedures; critics concur, however, that legislative action is still necessary to clear huge backlogs in the system.

Last November, President Barack Obama announced an executive order that would allow about four million undocumented people to live and work legally in the U.S. The executive order also expands the Deferred Action for Childhood Arrivals program, as well as allotting more employment-based visas.

Congress immediately blocked the measure, saying the president had overstepped his role, but the Senate allowed the order to stand. Twenty-six states then filed suit to block implementation of the president’s mandate. Texas U.S. District Court Judge Andrew Hanen issued a temporary injunction in February.

The White House Council of Economic Advisors has reported that the president’s executive actions, if fully implemented, would boost the U.S. gross domestic product to over $100 billion, expand the size of the American labor force, and raise average annual wages for U.S.-born workers by four percent over the next 10 years. The president’s actions would also cut the federal deficit by $30 billion in 2024, reported the three-member Council.

In keeping with the president’s mandate, Cecilia Munoz, director of the White House Domestic Policy Council, introduced a report July 15, “Modernizing and Streamlining Our Legal Immigration System for the 21st Century,” which highlights a number of new actions that federal agencies will undertake to improve the visa processing experience.

“Currently, the process to apply for a visa is complex, paper-based, and confusing to the user,” said Munoz. “Many immigration documents pass through various computer systems and change hands no fewer than six times,” she said, adding: “Our goal is to modernize this process and deliver a positive experience to our users.”

A team of engineers from the U.S. Digital Service agency will work with the Department of Homeland Security to bring the majority of the visa application process online and deliver consistency and ease of use throughout. The administration stated it is aiming to reduce government costs, reduce burdens on employers who must verify that their employees are eligible to legally work in the U.S., and mitigate fraud and abuse of the immigration system.

The new actions simplify the H-1B application process, along with reducing the number of documents needed for applications and extensions of H-1B visas. The new action also simplifies the process under which an employer can directly sponsor students on F-1 visas for legal, permanent employment.

The process of applying for a T visa – for victims of human trafficking – or a U visa – for victims of crime and domestic violence – has also been simplified. “There are numerous avenues for humanitarian relief provided to vulnerable individuals in our immigration system. However, many of our existing policies and regulations do not reflect the most recent laws. These recommendations will improve our system for individuals seeking humanitarian relief,” said the White House in a statement.

Suman Raghunathan, Indian American executive director of South Asian Americans Leading Together, cheered the simplification of the T and U visa application process and noted that DHS will now allow victims of domestic violence to self-petition for a permanent visa and simultaneously apply for work authorization. Currently, many victims of domestic violence remain in abusive households as their immigration status is linked to their spouse’s status. An abusive partner can hold immigration status as a weapon to keep a spouse in her place, note agencies that work with domestically-abused women.

But the action plan falls short of providing relief for many immigrants, said Raghunathan in a press statement. “The job is not done,” she said, adding that the plan cannot address visa backlogs, which require legislative action.

“Today’s announcement only further underscores the importance of the continued push for comprehensive immigration reform legislation that includes a path to citizenship,” said Raghunathan. “Our nation and our communities continue to need just and inclusive immigration reform legislation that includes a pathway to citizenship, keeps families together, and expands economic opportunity for all aspiring Americans. We remain committed to that ultimate goal,” she said.

In related news, Commerce Department Secretary Penny Pritzker July 15 commented on the value of immigrants to the U.S.’s economic growth goals at National Council of La Raza’s Annual Conference in Kansas City, Missouri.

“To succeed in the global economy, our path forward must ensure that America continues to be a place where anyone can contribute their ideas and abilities to our prosperity,” said Pritzker. “The United States has been built, strengthened, and sustained by generation after generation of immigrants. This remains true today.”

“Advancing permanent, comprehensive immigration reform is not just a moral obligation; it is a matter of economic necessity. If we do not welcome the best and brightest to our shores, if we do not attract the top minds, workers, and innovators to our communities: put simply, we will be left behind,” she said.

Pritzker said she was also inspired by undocumented youth, who are known as DREAMers.

“Every time I meet a DREAMer, I come away moved by their stories, inspired by their potential, and more committed than ever to their cause. They want the chance to change the course of their lives and participate in our economy. They want to be a part of America’s success in the years to come. Yet they too often sit in limbo,” she said.

India, U.S. resolve 35 transfer pricing disputes in IT sector

Ajay GhoshBusiness 0

The Revenue Department on Thursday said 35 transfer pricing disputes between India and the U.S. in different segments of Information Technology (IT) have been resolved and another 100 are likely to be settled in the next three months. A Framework Agreement was recently signed with the U.S. under the Mutual Agreement Procedure (MAP) provision of the India-U.S. Double Taxation Avoidance Convention (DTAC).

“This is a major positive development,” the Central Board of Direct Taxes (CBDT) said in a statement. About 200 past transfer pricing disputes between the two countries in IT (Software Development) Services [ITS] and Information Technology enabled Services [ITeS] segments are expected to be resolved under this Agreement during the current year.

“So far, 35 disputes have been resolved and another 100 are likely to be resolved in the next three months,” the CBDT said. The Framework Agreement with the U.S. opens the door for signing of bilateral Advance Pricing Agreements (APAs) with the US, it said.

“The MAP programmes with other countries like Japan and UK are also progressing very well with regular meetings and resolution of past disputes. “These initiatives will go a long way in providing stable tax environment to foreign investors doing business in India,” said the CBDT, which is responsible for direct tax collections in the country.

CBDT also said it has entered into two unilateral APAs with two multinational companies as part of a “major initiative” to usher in certainty in taxation. Of these, on is the first APA with a ‘Rollback’ provision. The agreements were signed on August 3.

With this, the CBDT has so far signed 14 APAs, of which 13 are unilateral APAs and one is a bilateral APA. APAs settle transfer prices and the methods of setting prices of international transactions in advance.

“The Government is committed to conclude a large number of APAs to foster an environment of tax cooperation and certainty. Currently, a number of unilateral as well as bilateral APAs with Competent Authorities of UK and Japan etc are at advanced stage of negotiations,” the CBDT said.

The 14 APAs signed relate to sectors like telecom, oil exploration, pharmaceuticals, finance, banking, software development services and ITeS (BPOs). Unilateral APAs are agreed between Indian taxpayers and the CBDT, without involvement of the tax authorities of the country where the associated enterprise is based. Bilateral APAs include agreements between the tax authorities of the two countries. An APA with the ‘Rollback’ provision extends tax certainty for nine financial years as against five years in APAs without ‘Rollback’

Amazon to Invest in India to Make It Biggest Non-U.S. Market

Ajay GhoshBusiness, Finance/Economy, Science & Technology 0

Amazon is planning to invest billions of dollars to catapult India as the world’s largest market outside of the United States, according to news reports. The e-commerce retail company said it could invest as much as $5 billion in the country.

Amazon, which entered India in 2013, committed to investing $2 billion in its Indian operation last year with an eye on capitalizing on the country’s expanding middle class. A large portion of the middle class, according to reports, is going online at a rapid rate. Most of the funds are expected to go toward expanding the company’s network of warehouses and data centers, as well as strengthening its marketplace platform.

It hopes to compete with India-based e-commerce retail rivals like Bangalore-based Flipkart, which was founded by former Amazon employees Sachin Bansal and Binny Bansal. CEO Jeff Bezos said Amazon’s presence in India has already exceeded expectations when it invested the $2 billion.

A report put together by The Associated Chambers of Commerce & Industry of India forecast a 67 percent increase in average annual online spending in 2015. Consulting firm PricewaterhouseCoopers projected India’s e-commerce industry was likely to balloon in value from some $17 billion in 2014 to $100 billion by 2019.

India-U.S. Investment Must Increase in Both Directions, Says Ambassador

Ajay GhoshBusiness, U.S. 0

SUNNYVALE, Calif. — The U.S.-India partnership is enjoying a historic high, but investment must increase in both directions, said Indian Ambassador to the U.S. Arun Kumar Singh on July 24, during a press conference at the Sunnyvale Hindu Temple here. Singh – who took on the post in May after serving for two years as India’s ambassador in France – noted that 100 Indian companies have invested $15 billion in the U.S., creating roughly 100,000 new jobs for Americans.

Infrastructure, mobile technology and renewable energy are three sectors ripe for U.S. investment in India, said Singh, adding that the country also offers great opportunities for innovation and entrepreneurship. As an example of Indian technology innovation, Singh pointed out that India was the fourth country to send a mission to Mars and did so at about 1/10th of the cost of a similar U.S. mission. India spent just $74 million to create the Mars Orbiter Mission – also known as Mangalyaan – less than the $100 million dollar budget for the movie “Gravity.” By contrast, NASA’s MAVEN Mars Orbiter cost $672 million. The successful mission was completed in October 2014.

“The India-U.S. relationship is very strong: this is the first time a U.S. president has visited India twice while in office,” said the ambassador. “Obama has said that the India-U.S. partnership is the defining relationship of the 21st century and has called for both countries to see what we can do for the rest of the world,” he added.

Earlier in the day, Singh joined a panel discussion on the future of India at the IIT Global Leadership Conference in Santa Clara, Calif. (http://bit.ly/1H78siH). At the talk, Singh said trade between India and the U.S. is poised to grow from $100 billion to $500 billion during the next decade. Chief among India’s interests are purchases in defense and aviation, said Singh, noting that India has already purchased $10 billion in military hardware from the U.S.

The new “Invest India” initiative promoted by Indian Prime Minister Narendra Modi’s administration will figuratively hold the hands of U.S. businessmen hoping to invest in India, and help sort through bureaucratic hurdles, said Singh.

During the press conference, Singh said he would only address the U.S.-India relationship, thereby dodging predicted questions about the treatment of India’s minorities. The ambassador also would not comment on Modi’s upcoming visit to the San Francisco Bay Area this September, saying the prime minister’s trip had not yet been formally announced.

Over $15 Billion Invested in U.S. by Indian Firms, Employ Over 91,000 Jobs

Ajay GhoshBusiness, Finance/Economy 0

India-based companies have invested over $15 billion across the U.S., creating an estimated 91,000 jobs, according to a new report released by the Confederation of Indian Industry and Grant Thornton. Of the investment destinations for Indian firms, New Jersey, California, Texas, Illinois and New York lead the way, noted the report, “Indian Roots, American Soil,” released on July 14 at an event on Capitol Hill.

Those states have the most Americans directly employed by Indian companies, with New Jersey accounting for 9,278 hires; California employs 8,937; Texas has 6,230 jobs; Illinois has seen 4,779 people land jobs; and New York employs 4,134.

Texas at $3.84 billion; Pennsylvania with $3.56 billion; Minnesota at $1.8 billion; $1.01 billion for New York; and $1 billion from New Jersey account for the highest foreign direct investment from Indian-based companies, the first time a state-by-state breakdown of tangible investments made by Indian firms has been provided.

Indian ambassador Arun Singh
Indian ambassador Arun Singh

Indians are “making a significant contribution to the U.S. economy, investing billions of dollars and creating thousands of jobs across states and sectors,” Indian Ambassador to the U.S. Arun K. Singh said. “This trend has grown stronger over the years and is continuing to show remarkable progress.”

The report said that 100 Indian companies have employed more than 91,000 people across 35 states, as well as Washington, D.C. Those 100 companies have made in excess of $15.3 billion in investments.

On average, the investment from Indian companies for each state is $443 million.

“Today Indian companies are not just investing and creating jobs, they have also become significant stakeholders in the growth and prosperity of their local communities,” Singh added.

CII’s study also said that roughly 84.5 percent of the companies intend to make more investments in the U.S., and 90 percent plan to hire more employees locally in the next five years.

“Prime Minister (of India, Narendra) Modi and President (Barack) Obama’s vision for the U.S.-India relationship is in many ways best exemplified through these Indian companies in America that, though they have Indian roots, are completely enmeshed into U.S. soil,” CII president Sumit Mazumder said.

UC Irvine Computer Scientist Wins $250K Award for Young Scientists

Ajay GhoshBusiness, Science & Technology 0

IRVINE, Calif. — Syed Ali Jafar, a University of California-Irvine computer scientist who has changed the world’s understanding of the capacity of wireless networks, last month won the 2015 Blavatnik National Award for Young Scientists in physical sciences and engineering.

One of three winners chosen from among 300 candidates from highly ranked American universities and research institutions, Jafar will receive a $250,000 unrestricted cash prize and a medal in September at New York’s Museum of Natural History.

A professor of electrical engineering and computer science, Jafar explores the fundamental performance limits of wireless communication networks. Determining network capacity — the maximum data rates that can be reliably supported — is the holy grail of network information theory, according to Jafar and others.

And with the rapid growth of wireless communication networks, the quest has taken on unprecedented urgency. Jafar’s research group has gained worldwide recognition for its numerous seminal contributions to this topic, including its groundbreaking work on interference alignment in wireless networks.

This research found that data rates are not limited by the number of devices sharing the radio frequency spectrum, a discovery that changed the thinking about how wireless networks should be designed.

“This is a truly remarkable result that has a tremendous impact on both information theory and the design of wireless networks,” one of the judges, Paul Horn, senior vice provost for research at New York University, stated in a UCI press release.

Jafar became interested in science in high school. “Einstein’s E=mc2 captured my imagination,” he said. The equation made him wonder about how something so profound could be so simple and beautiful – and it became his lifelong dream to pursue beauty through science.

As a graduate student studying information theory at the California Institute of Technology, Jafar found similar elegance in the formula describing the capacity of an information channel. He realized that much about the capacity of communication networks was still unknown and made it his life’s work to solve the mystery.

Jafar earned a B.Tech. degree at the Indian Institute of Technology in Delhi, an M.S. at Caltech and a Ph.D. at Stanford University, all in electrical engineering. He’s a fellow of the Institute of Electrical & Electronics Engineers, and he recently received the UCI Academic Senate’s Distinguished Mid-Career Faculty Award for Research.

Jafar was also recognized as a Thomson Reuters Highly Cited Researcher and included by ScienceWatch among the World’s Most Influential Scientific Minds in 2014.

U.S. Company To Pay $20 M To Exploited Indian Guest Workers

Ajay GhoshBusiness, Community 0

It took 7 long years to get justice for some 200 Indian guest workers defrauded by a major U.S. company, but they stuck it out say their American lawyers, and victory was theirs’ when on July 14, Signal International, a Gulf Coast marine services company decided it would rather pay a total of $20 million to them than face 11 more lawsuits pending in southern courts, media reports here say.

In February this year, Signal International had to cough up $14.4 million in a jury ruling to five Indian guest workers, one of the largest settlements of its kind in U.S. history. The ruling was based on the finding that the company and its agents engaged in labor trafficking, fraud, racketeering and discrimination. The jury also found that one of the plaintiffs was a victim of false imprisonment and retaliation.

In a video posted on the SPLC website, Daniel Warner, SPLC senior supervising attorney in the case described the “dangerous” working conditions for these skilled men in the bowels of the oil rigs and pointed to the huge profits Signal made off their backs after bringing them to this country on false promises. The case was the first of the dozen lawsuits against Signal to go to trial. Now with this an additional settlement of around $6 million to resolve the 11 pending cases, the total of more than $20 million makes it one of the largest labor trafficking cases in U.S. history settled in workers’ favor.

The 11 pending cases were also spearheaded by the Southern Poverty Law Center against Signal along with the leading law firm Crowell & Moring, LLP, the American Civil Liberties Union, the Asian American Legal Defense and Education Fund, Coschignano & Baker, and the Louisiana Justice Institute.

Signal, based in Mobile, Alabama, will issue an apology to guest workers who also sued in Texas and Louisiana. The agreement has yet to be approved by the U.S. Bankruptcy Court as the company has filed for Chapter 11 bankruptcy protection. “We are happy to have reached an agreement and hope to see it quickly approved by the court,” Jim Knoepp, SPLC deputy legal director is quoted saying in a release. “These workers have waited seven long years for justice.”

The settlement, he said also serves as a warning to companies that might exploit guest workers.

India highest recipient of US economic assistance: USAID

Ajay GhoshBusiness, Finance/Economy, India, Politics 0

Washington, DC: India is tipped to be the second largest economy in the world with the GDP going to be second only to China by 2050. Today, it is the third largest economy in the world after the US and China. However, the US, the largest economy in the world today has been providing assistance to India more than any other nation in the world.

The US provided $65.1 billion as economic assistance to India between 1946 and 2012, according to the US Agency for International Development (USAID) statistics.

It was the highest among the economic assistance provided to 200 countries and regions by the US during the period. USAID is the lead US government agency that works to end extreme global poverty and enable resilient, democratic societies to realise their potential.

The data, which was inflation adjusted, shows India received $65.1 billion in economic assistance, followed closely by Israel, which got $65 billion. Pakistan, which received a total of $44.4 billion from the US, was among the top five countries of the total 200 nations and regions getting the economic assistance.

Indian economic aid was spread over various sectors and programs, including child survival and health, development assistance, HIV/AIDS initiatives, migration and refugee assistance, food aid and narcotics control. Some $26 billion of the total aid was provided for various USAID programs.

In comparison, of the total economic assistance provided to Pakistan, $13.8 billion was given for USAID programs, while $13.7 billion was attributed to the Economic Support Fund and Security Support Assistance.

Companies in India create thousands of U.S. jobs

Ajay GhoshBusiness, Science & Technology 0

Arun Singh with President ObamaA remarkable story that has often escaped public attention in the overall context of the vibrant India-U.S. relationship is that Indian companies have been pouring investment dollars into businesses in the U.S. and creating tens of thousands of American jobs. A new report from the Confederation of Indian Industry and the accounting firm Grant Thornton reveals that not only is Indian investment in the U.S. large, it’s also extremely widespread and clearly growing.

The 100 Indian-based companies surveyed for the study have made an aggregate $15.3 billion investment in their U.S. operations. That, in turn, has created 91,000 jobs in the U.S., which by any measure is a substantial contribution to the American economy. Those jobs are scattered throughout the country. In fact, the survey found that Indian companies have a presence in all 50 states.

The U.S. isn’t just a favored destination for the time being; it is likely to remain attractive for Indian investors for years. When asked if they plan to invest in the U.S. in the next five years, 84.5 percent of the Indian companies surveyed said yes. Only 4 percent said no. Asked if they plan to hire more employees locally in the U.S. over the next five years, 90 percent of the companies answered in the affirmative.

The survey also challenges the greatest stereotype about the kinds of Indian companies in the U.S. They are not all information technology companies. Far from it. In the U.S., IT comprises 40 percent of Indian-company investment, according to the survey. The rest is highly diversified. Life sciences, pharmaceuticals and health care companies make up 14 percent of Indian investment here. Another 14 percent are manufacturers and mining companies. 16 percent offer financial, engineering, construction and entertainment services. The remainder is companies in the automotive, energy, hospitality and food businesses.

The average investment received from Indian companies per state is substantial: $433 million. The top five states with the highest volume of investment – $1 billion or more – are Texas ($3.85 billion), Pennsylvania ($3.56 billion), Minnesota ($1.8 billion), New York ($1.01 billion) and New Jersey ($1 billion).

In terms of employment generated by Indian companies, the top five states are New Jersey and California, each with about 9,000 jobs, Texas (6,000 jobs), Illinois (5,000 jobs) and New York (4,000 jobs).

Arun Singh with NRIsAll of these numbers have been rising steadily, a sign that the U.S. market is among the strongest investment destinations in the world. These substantial investments are also a testament to the trust and openness that India and the U.S. enjoy both at the people-to-people and government-to-government levels. According to Select USA, India is now the fourth-fastest growing source of foreign direct investment into the United States. The significant and growing contributions of Indian investments in the U.S. remain a vital component of the bilateral relationship.

American firms, of course, have long been major investors in India. Foreign direct investment by U.S. firms in India has been more than $1 billion a year. Efforts by Prime Minister Narendra Modi to make economic growth a hallmark of his administration have accelerated U.S. investment there.

India has been lowering barriers to investment and encouraging business expansion. For example, the Indian government has over the past year raised limits on foreign investment in sectors such as insurance, medical devices, railways and defense. This will no doubt provide myriad opportunities for U.S. companies to increase their presence in India and will strengthen Indian companies so that they can enlarge their footprint in the U.S.

The exchange is good for both nations and should be encouraged. The U.S. and India have much in common. They are the largest democracies in the world. They are also economic powerhouses that are helping each other grow in a dynamic global marketplace. We have a stake in each other’s economic future – and that future is very bright.

Arun K. Singh is India’s ambassador to the U.S.

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