Mr. Obama, Look at these figures

Posted June 20, 2009 - 09:12 by isohelpline
Dear Mr. Obama,

I do not write long letter but simple to the point giving opportunity to readers to think. Your quot regarding Buffalo and Banglore (or Bangaluru) is well known. When making that quot, you probably had a brief of IT export figures relating to India.

India has IT export of about $52b of which $48b comes from US alone. Knowing this simple figure can let any body think that India is gaining on account of loss to US citizens. But that fact is far from it.

A recent study by FICCI and Ernst and Young said companies like Tata Chemicals, Wipro, Reliance Communication and First Source were involved in bailing out US companies in the red. During the last two decades Indian companies acquired 143 US firms in various sectors like IT, ITeS, pharmaceutical, manufacturing, communication etc. 

Statistics shows that these companies (143 companies bought out by Indian companies) were on the verge closure. In 2007-08 total outbound investment by Indian companies, as per RBI, was about $18b. In first half of 2008-09, at least 2000 proposals valued at $9b were approved for overseas investment in joint ventures and wholly owned subsidiaries.

If outsourcing to India by US companies have created jobs in India, the investment by Indian companies in US has saved thousand of Americans managed to save their jobs.

I hope these figures will help you in correct estimation of the situation.

Note: This may be called the Indian view, I invite readers to put in other views as well.

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