India’s IT services sector expanded jobs, investments, taxes paid and community support across the US, the National Association of Software and Services Companies (NASSCOM) said Monday.
In a report entitled, “Contributions of India’s Tech Industry to the U.S. Economy,” NASSCOM said India-based IT companies providing services to American businesses and other customers have invested more than $2 billion in 2011-2013. They have paid $22.5 billion in taxes to the U.S. Treasury in the last five years and currently support more than direct and indirect 411,000 jobs in the U.S.
Introducing the report, India’s Minister of State for Commerce and Industry, Nirmala Sitharaman, said Indian IT organizations benefit from access to the U.S. market, “just as American IT organizations benefit from their investments and operations in India.”
“This momentum is surely going to increase manifold with new partnership opportunities emerging in the areas of Digital India and Smart Cities for American technology firms,” she added.
According to NASSCOM statistics, direct and indirect jobs supported by India’s IT sector in the U.S. grew at an annual rate of 10 percent in 2011 to 2014. It is about six times higher than the average jobs growth rate of 1.7 percent during that same period.
“The two-way flow of investments and intellectual talent is central to the growing commercial and strategic relationships between India and the US,” noted NASSCOM president R. Chandrashekhar.
Direct and indirect jobs supported by India’s IT sector in the US grew at an annual rate of 10 percent in 2011 to 2014, or about six times higher than the average jobs growth rate of 1.7 percent during that same period, the report said.
States leading the number of direct jobs created by India IT sector operations and investments are California, Texas, Illinois, New Jersey, New York, Georgia, Ohio, Washington, Michigan, and Pennsylvania.
Texas, Michigan, Illinois, California and Georgia had the fastest rate of job growth in 2011-2013.
In addition to jobs, investments and taxes paid, the report estimated that philanthropic activities by Indian IT companies touched more than 120,000 American lives in 2011-2013.