Revision as of 12:41, 5 March 2019

Creation of jobs

2017/ Indian companies create over 1 lakh jobs in US

The Times of India November 15, 2017

HIGHLIGHTS

Indian firms are among the fastest growing investors in the US, contributing to growth and job creation in the US economy, a lawmaker said

The top five states in which Indian companies have generated maximum employment are New Jersey, Texas, California, New York and Georgia

Indian companies have created more than 113,000 jobs in the US and invested nearly $18 billion in the country, according to an annual report which gives state-by-state breakdown of the tangible investments made and jobs created by 100 Indian firms doing business in America and Puerto Rico.

The report titled 'Indian Roots, American Soil', which was released by Confederation of Indian Industry (CII) on Tuesday, states that Indian companies have also contributed $147 million towards corporate social responsibility and $588 million as research and development expenditures in the US.

Together, 100 Indian companies employ 113,423 people across 50 states, the District of Columbia and Puerto Rico, the report said, adding that the total value of tangible investments made by these companies exceeds $17.9 billion.

The top five states in which Indian companies have generated maximum employment are New Jersey (8,572 jobs), Texas (7,271 jobs), California (6,749 jobs), New York (5,135 jobs) and Georgia (4,554 jobs).

According to the report, the top five states in which Indian companies have contributed the highest foreign direct investment are New York ($1.57 billion), New Jersey ($1.56 billion), Massachusetts ($931 million), California ($542 million) and Wyoming ($435 million).

The average amount of investment received from Indian companies per state/territory is $187 million, the report said, noting that 85 per cent of the companies plan to make more investments in the US.

As many as 87 per cent of the companies plan to hire more employees locally in the next five years. Indian industry and professionals are making significant contributions to the US economy, said Indian Ambassador to the US Navtej Sarna.

"The presence and reach of Indian companies continue to grow each year as they invest billions of dollars and create jobs across the United States," he said.

Chandrajit Banerjee, CII director general said the story of Indian investment in the US is one that showcases how intertwined the two countries are that contribute to each other's success. Indian firms are among the fastest growing investors in the US, contributing to growth and job creation in the US economy, said Senator Chris Van Hollen. As the world's oldest democracy and the world's largest democracy, a strong US-India partnership is vital for the 21st century, said Congressman Ami Bera.

The friendship between the United States and India has continued to grow under President Trump's administration, said Congressman Pete Sessions. Indian businesses have brought hundreds of millions of dollars and thousands of jobs to Texas and, at the same time, the reforms led by Prime Minister Modi have opened doors for American companies to expand their operations in India, he said.

"I am glad to see, as CII's event today proves, bonds between our nations - both commercial and strategic - continue to grow stronger," Sessions said.

"According to CII's survey, Indian companies in Virginia have invested over $37 million in my state, and I can only hope that they will continue to invest in Virginia and that our engagement with these companies will continue to grow," said Congressman David Brat. In addition to spurring economic activity, particularly in North Carolina, this type of investment serves to strengthen the bond between our two countries, said Congressman George Holding. The report shows that Indian companies have invested over $195 million in the state of Illinois, and created over 3,800 jobs, said Congressman Raja Krishnamoorthi.

"I hope that Indian companies continue to put down roots and invest in our state, as our economy and community are strengthened by their engagement with us," he said.

Earnings from the US

Data earnings: 2017

At $11bn, India's data earnings from the US is 20x what next 9 bring- 2017
From: May 26, 2018: The Times of India

See graphic:

At $11bn, India's data earnings from the US is 20x what next 9 bring- 2017

Trade issues

2018: Harley Davidson, 100% duty, Modi and Trump

Chidanand Rajghatta, Why Trump is obsessed with Harley in India, February 28, 2018: The Times of India

US President Says ‘Fantastic’ And ‘Beautiful’ Modi Sweet-Talked Him On Motorcycle Tariffs

US President Trump lit into India again on Monday in a rambling critique on trade issues, picking on a minor dispute with New Delhi over motorcycle tariffs to highlight his grievance that other nations have taken advantage of previous US administration’s negligence on trade. For the second time this month, Trump latched on to an issue that does not even account for 0.05% of the $140 billion US-India bilateral trade, itself ranked tenth in the US commercial sweepstakes.

After lamenting how China, Canada, and Mexico — the top three American trade partners — were ripping off the US, Trump settled on the Harley Davidson dispute with India to build a case for his version of fair trade. “So we want fair trade deals. We want reciprocal trade deals. Scott Walker has a wonderful company called Harley Davidson in Wisconsin. Right? Great. So when they send a motorcycle to India, as an example, they have to pay 100 percent tax — 100 percent,” Trump began, even though he acknowledged Prime Minister Narendra Modi personally intervened to reduce it to 50%. It isn’t enough for Trump.

“Now, the Prime Minister, who I think is a fantastic man, called me the other day. He said, “We are lowering it to 50 per cent.” I said, “Okay, but so far we’re getting nothing.” So we get nothing, he gets 50 (per cent), and they think we’re doing — like they’re doing us a favour. That’s not a favour. And you know what I’m talking about,” he rambled on.

Trump then revealed that Harley itself had not asked for concessions and he was the one who was spending time on an issue that is laughably insignificant in terms of US world trade. “It’s a great company. When I spoke with your chairman or the president of Harley, they weren’t even asking for it because they’ve been ripped off with trade so long that they were surprised that I brought it up. I’m the one that’s pushing it more than they are, but it’s unfair,” he said. “And India sells us a lot of motorbike…So when they have a motorbike — a big number, by the way — they have a company that does a lot of business. So they have a motorcycle that comes into our country — We get zero. They get 100 percent, brought down to 75; brought down, now, to 50. Okay,” he said.

Then he returned to Modi. “And I wasn’t sure — he said it so beautifully. He’s a beautiful man. And he said, ‘I just want to inform you that we have reduced it to 75, but we have further reduced it to 50.’ And I said, ‘Huh.’ What do I say? Am I supposed to be thrilled? And that’s not good for you people, especially as governors. It’s just not right. And we have many deals like that,” he told a meeting of the nation’s governors, who were further gobsmacked when he told them he would have confronted the Florida shooter unarmed.

India exports less than 1,000 motorcycles to US; African and Latin-American countries buy many times more. Besides, Harley manufactures its bikes in India now, and the tariff would largely be on the few imported bikes and semi- and completely knocked down components.

The US president’s obsession with Harley and its effort to get greater traction in India is attributed to the motorbike users demographic profile — mostly white, middle-aged men in middle America who typically voted for Trump as attested by “Bikers for Trump” rallies during the election. Trump also narrowly won narrowly won Wisconsin (47.2% to Hillary’s 46.5%), where the Harley headquarters is located (in Milwaukee) and ostensibly wants to show his gratitude to the state’s working class voters who ditched Democrats, making him the first Republican candidate to carry the state since Ronald Reagan in 1984.

So despite the insignificance of the dispute and the negligible numbers, he wants to make it a signature issue on manufacturing, ignoring the fact that Harley manufactures from India. “It is an easy illustrative example for his voters because Harley is an iconic brand,” one trade expert told TOI on background. “US and India actually have much bigger trade disputes, on medical devices for example.”

What Trump also doesn’t know or prefers to ignore is Harley’s entry to India was premised on a “mangoes for motorbikes” deal in 2007 between then President George Bush and PM Manmohan Singh, an agreement that took a long time to fructify for India because mango exporters had to jump through all kinds of hoops (including irradiating mangoes to get rid of pests), making the mangoes almost unaffordable in the US (up to $36 for a box of 12).

Duty-free concessions on 50 Indian products’ import revoked

US revokes duty-free privileges, November 2, 2018: The Times of India

Imports Of 50 Indian Products Face Heat Over Trump Stand

The US on Thursday revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration’s tough stand on trade-related issues with New Delhi.

The federal register issued a notification, listing out 90 products that were so far subject to duty-free provisions under the Generalized System of Preferences (GSP).

US President Donald Trump issued a presidential proclamation on Tuesday, leading to the removal of these products from the privilege beginning November 1. These products “will no longer qualify for duty-free preferences under the GSP programme but may continue to be imported subject to regular Most Favored Nation duty-rates,” an official of US Trade Representative (USTR) said.

A review of the products indicates that the presidential proclamation is not country specific, but product specific. With India being the largest beneficiary of the GSP, it has been hit the most by the latest decision of the Trump administration.

The GSP, the largest and oldest US trade preference programme, is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

A count of these products indicated that at least 50 of them are from India. Notably, India is the largest beneficiary of the GSP. In 2017, India’s duty-free export to the US under the GSP was over $5.6 billion.

The volume of India’s export to the US impacted by the latest move of the Trump administration is not known yet, but the list of products from which duty-free import provision has been removed reflects that a large number of small and medium size business could be impacted, in particular handloom and agricultural sector.

In his presidential proclamation, Trump said that certain ‘de minimis’ waivers will no longer be granted for any product, regardless of the country source, that exceeds the GSP’s Competitive Need Limitation (CNL) thresholds. The CNL thresholds are quantitative ceilings on GSP benefits for each product and designated beneficiary country.

2019: GSP withdrawal

US plan to end preferential trade status won't have much impact: India, March 5, 2019: The Times of India

The US decision to withdraw duty benefits on Indian products under the Generalized System of Preferences (GSP) programme will not have a significant impact on exports to America, a top government official said.

India exports goods worth $5.6 billion under the GSP, and the duty benefit is only $190 million annually, commerce secretary Anup Wadhawan said.

India mainly exports raw materials and intermediate goods such as organic chemicals to the US, he said. The response comes after the US government said it intends to end the preferential trade status granted to India

"GSP withdrawal will not have a significant impact on India's exports to the US," the secretary told reporters here.

The US demand for relaxation in norms for exports of medical devices and dairy products are non-negotiable to India.

US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of "equitable and reasonable" access to its markets, an announcement that could be seen as a major setback to bilateral trade ties.

The US Trade Representative's Office has said that removing India from the GSP programme would not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation.

As many as 1,900 Indian products from sectors such as chemicals and engineering get duty free access to the US market under the GSP, introduced in 1976.