Indian investment in U.S. surpasses US$2 bil.

Information technology and IT-enabled services’ industries accounted for 48 percent of the deals, which included large contracts in other sectors such as pharmaceuticals, hospitality, agricultural products and the automotive industry, the study said.

“Over the last decade, Indian companies belonging to diverse industries have been gradually gearing up to become emerging multinationals. Leveraging the nation’s comparative advantage of knowledge, Indian companies have grown through acquisitions, built best-in-class competency and become large-scale players,” the report said.

The companies that clinched the top five deals during 2006-07 are Tata Tea, ONGC Videsh, Tata Coffee, Indian Hotels and HOV Services.

The report also noted that Indian outbound deals crossed US$15 billion in 2006, and projections suggested the 2007 value could surpass US$35 billion.

During the first nine months of 2006, Indian companies announced 115 foreign acquisitions worth US$7.4 billion, a seven-fold increase since 2000.

The study cited growing confidence among Indian companies coupled with the willingness to take risks as the key factors for the rise in investments.

Indian companies are now well-equipped to acquire overseas companies because of liberalized government regulations and monetary relaxations.

In the business-process outsourcing sector, the report said Indian companies are now increasingly opening up units in the U.S. , providing opportunities of large-scale employment there, giving rise to a “reverse outsourcing” trend.

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