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| India is second-fastest growing foreign investor in US |
| Lalit K Jha/PTI / Washington Mar 13, 2010, 11:39 IST |
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India has emerged as the second fastest growing investor in the United States after the UAE between 2004 and 2008, a top Obama Administration official has said.
The recent years have seen the drift toward a newer group of investors from countries such as the UAE, India, Spain and Chile, Under Secretary of State for Economic, Energy and Agricultural Affairs Robert D Hormats said in his address to the US Council for International Business.
While historically European nations have been the leading investors in the US, the fastest growing between 2004 and 2008 have been the UAE, which has shown a 230 per cent average annual increase over four years, followed by India with 64 per cent increase, Spain with 60 per cent, Chile 50 per cent, Switzerland with 38 per cent), South Korea with 31 per cent, China with 30 per cent and Indonesia with 27 per cent.
"I doubt that most Americans are aware of how much new investment is coming from this group of countries," Hormats said, adding the challenge for the US now is to embrace this new dynamic.
Among top investors, European countries hold 62 per cent of the stock of FDI (foreign direct investment) in the US, with Germany, Switzerland, the United Kingdom, France, and Spain as the main investing countries.
The next largest group of investors is Japan, Canada, and Australia, said Hormats.
"Not only must we maintain and grow the historic trans-Atlantic investment relationship, but we also must reach other potential investment partners to draw more FDI to the US," he said.
He said the BRIC economies (Brazil, Russia, India and China) are becoming important investors globally as they recognize the importance of such investments for their own economic success.
The State Department, he said, is taking this opportunity to build on common ground.
"We are taking critical steps to forge multilateral investment policy in the OECD and UNCTAD, and in our dialogues with the EU and BRICs. Our aim is to strengthen and expand sound investment policies and practices in more and more countries, with the objective of seeing the emergence of a coherent rules-based international system," he said.
On the role of investments in the country's economy, Hormat quoting from Texas governor Rick Perry's statement said, "At last count, there was $92 million worth of direct foreign investment in Texas by Indian companies. And there are 317 Texas workers employed by companies based in India. The benefits of investment are more than just financial gains in our state. Foreign direct investment creates new jobs and unleashes an infusion of innovative technologies, progressive management strategies, and effective workforce practices."
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