India-Based Tech Firms Boost U.S. Economy, Job Growth
Indian technology companies have invested more than $5 billion through 128 acquisitions, saving and sustaining thousands of jobs in the United States.While the overall unemployment in the United States remains disturbingly high, the direct workforce employed in the country by the Indian IT sector has almost doubled in the last five years to 107,000, and it is estimated that the industry supports more than 280,000 jobs in the United States, growing even in a weak economic environment, according to a study by the National Association of Software and Service Companies (NASSCOM). Most of these indirect jobs span across various sectors and at every level in the U.S. economy, ranging from Virginia to Texas to California. The study, "Contribution of Indian Tech Companies to the U.S. Economy," also reaffirms U.S. government figures that show investments from India to the U.S. grew by 90 percent in 2010 from the year before, capping what has by now become a trend of growing commerce between the two countries. Trade between India and the United States has increased eightfold in the last 20 years, the study noted.
Three out of every four jobs supported by Indian companies are constituted by locals in the United States, and based on updated employment multipliers of the Economic Policy Institute, for every one direct job, 1.6 indirect jobs have been added to the ecosystem, including in the supplier industry (logistics, telecom and computer hardware), re-spending industry (retail and hospitality), and federal and state government jobs. Headcount was highest in California, Illinois, New York, Texas, Washington, New Jersey and Michigan. Overall, about 40 percent of U.S. nationals employed by Indian companies are working in California, Michigan, Texas and Illinois.