US Exports To India Support 2,60,000 Jobs In America: Report

Washington: American exports to India support more than 260,000 jobs directly and indirectly in the US and the cumulative investment from the country into India reached $28.3 billion in 2015, a new report said on Monday.

India’s foreign direct investment (FDI) in the US totalled $9.2 billion as of 2015, up more than 500 per cent since 2006, said the report ‘India Matters for America/America Matters for India’, which was released by Federation of Indian Chambers of Commerce and Industry (FICCI) and East-West Centre at an event on the sidelines of Prime Minister Narendra Modi’s visit here.

“Every US state exports to India, these exports support more than 260,000 jobs directly and indirectly,” the report said.

Thirty-one states have more than 1,000 jobs dependent on exports to India, while an additional six states have 10,000 jobs or more,” said the report, adding that the cumulative investment from the US into India reached $28.3 billion in 2015.

Noting that the US is one of the largest sources of investment into India, the report said since 2000, the US invested over $20 billion in India, more than six per cent of India’s total inflow of investment.

According to the US Trade Representative, India’s direct investment in the US is led by professional, scientific, and technical services; depository institutions and manufacturing.

Among the Asia Pacific countries, India is the 7th largest investor in the US, it said.

“The study clearly brings out the multi-faceted relationship between India and the US and which has only been strengthening with time. Be it trade, investments, tourism, student exchanges or engagement in strategic sectors like defence, India and the US have continued to contribute a lot to each other’s economy,” said Pankaj Patel, FICCI president.

Stating that the defence trade between the US and India increased from $1 billion to over $15 billion, it notes that India was named a ‘Major Defence Partner’ of the United States in 2016, a status which was created to facilitate technology sharing with India to a level at par with that of the United States’ closest allies and partners.

US Exports To India Support 2,60,000 Jobs In America: Report

The signing of defence agreements such as the Defence Technology and Trade Initiative (DTTI) and the Logistics Exchange Memorandum of Agreement (LEMOA) furthered cooperation.

India conducts more bilateral exercises and personnel exchanges with the US than with any other country, 50 formal events annually, it said.

According to the report, the two-way trade between the US and India increased nearly 200 per cent since 2005, with total value from $37 billion in 2005 to $109 billion in 2015.

US exports amounted to $21.5 billion in goods and $18.1 billion in services to India in 2015.

The US is the top destination for Indian goods, 14 per cent of India’s export.

Also the US is India’s 2nd largest trading partner while India is the 9th largest goods trading partner of the US.

Further US goods imports from India increased from $1 billion in 2000 to almost $45 billion in 2015, a fourfold increase, it said.

Nearly 2,000 American multinational enterprises (MNEs) operate in India, more than from any other foreign country, and employ over a million people, according to US Bureau of Economic Analysis (BEA) estimates, it said adding that sales by these companies amounted to $76.7 billion in 2014.

There are also over 200 Indian companies in the United States. These companies have invested over $15.6 billion across 37 states and employ over 100,000 people. Sales by Indian MNEs totalled $25 billion in 2014, the report said.

More than 1.2 million US tourists visited India in 2015, accounting for over 15 per cent of all international visitors, and contributing over $3 billion to the Indian economy, it said.

In the same year, over 1 million Indians traveled to the United States.

As the 7th largest source of visitor spending in the United States, Indian tourists contributed $11.4 billion to the US economy.

Thirty-one US states saw an economic impact of $100 million or greater from spending by Indian visitors, the report noted.

The United States is also the top destination for Indian students studying abroad, with US schools hosting half of all Indian international students.

Almost 166,000 Indian students studied in the United States during the 2015/16 academic year, a 25 per cent increase over the previous year, and contributed over $5 billion to the economy.

Indian students make up 16 per cent of all international students in the US.

A majority of Indian students study at the graduate level, and 35 per cent study in a math or computer science field.

American students in India numbered over 4,000 during the 2014/15 academic year.

India is the 4th most popular destination for US students studying abroad in the Asia Pacific, it said.

 

Steve Jobs Created The iPhone Because He Hated A Microsoft Employee: Here’s The Story

The iPhone, Apple’s flagship device and arguably one of the most important inventions of the century, has long been attributed as a product of the genius of Steve Jobs. Apparently, though, it is also a product of his hate.

Scott Forstall, the co-inventor of the iPhone and former Apple senior VP of iOS, revealed that Jobs started working on the now-iconic device due to a feud with a Microsoft employee.

How Was The iPhone Created?

In an interview at the Computer History Museum, and in his first public appearance since his controversial exit from Apple due to the failure of Apple Maps in iOS 6, Forstall revealed the events that pushed Jobs to create the iPhone.

“It began because Steve hated this guy at Microsoft. That is the actual origin,” Forstall said. That person was not Jobs’s longtime rival and sometimes friend Bill Gates but rather an unnamed Microsoft employee.

The Microsoft employee was the husband of a friend of Steve’s wife, Laurene. The couples often met in parties and other functions due to being in the same social circles, and every time Jobs ran into the man, “he’d come back pissed off,” Forstall narrated.

Setting the creation of the iPhone into motion happened at a weekend party, when the man told Jobs that Microsoft had “solved computing” through its early foray into tablet PCs. These devices, similar to the tablets of today, were lighter and smaller compared to computers and featured touch displays.

The fact that Jobs hated the most about the tablet PCs, leading to his irritation on the Microsoft employee’s comments, is that the devices only worked with a stylus. The Monday after, Jobs launched “a set of expletives” before starting to work on a touchscreen device that would outdo Microsoft’s tablet.

“First thing is, they’re idiots. You don’t use a stylus,” Jobs said, according to Forstall. Jobs said that users are prone to losing them, and they are counterintuitive considering that people are born with 10 styluses on their two hands.

The project started as a tablet, with Apple finding success in creating multi-touch displays. However, around 2004, Apple shifted from developing a tablet to creating a mobile phone after Jobs and Forstall entered a coffee shop. Jobs found that many customers were using their mobile phones, but they didn’t seem happy at all about it. Jobs considered it an opportunity and asked Forstall if the multi-touch display on the tablet that Apple was working on can be fitted on a mobile phone.

It was a “herculean” challenge to decrease the size of the multi-touch display, but Forstall knew that Jobs was right when the iPhone was completed.

“This is how phones need to be made,” Forstall said. The rest is history.

The Evolution Of The iPhone

The iPhone, ever since its announcement in 2007, has continuously evolved. The premium iPhone 8, which Apple is expected to reveal in September, is now a much more powerful and useful smartphone compared to its first iteration.

It is interesting to know that the creation of the iPhone was equal parts an emotional response and unique insight into consumer products. Nevertheless, Apple’s flagship product will not go anywhere as it evolves according to the needs of its users.

 

IT export to grow at 7-8%, 1.5 lakh jobs to be created in 2017-18: Nasscom

Indian IT exports will grow by 7-8 %, unchanged from previous year’s growth, despite protectionist voices in major markets like the US, industry body Nasscom said today.

The $ 156 billion Indian industry — the biggest job creator in the organised sector — is also projected to add 1.3-1.5 lakh new jobs during 2017-18 compared to a net hiring of 1.7 lakh in the previous fiscal.

In a first, the industry body had deferred giving the growth forecast in February and had instead postponed the same to April-June quarter.

Speaking to reporters, Nasscom president R Chandrashekhar exuded confidence that the outlook is positive despite the political and economic uncertainties in key overseas markets that may impact client spending.

“We expect export revenues to grow by 7-8 %, not hugely different from last year (7.5 %), notwithstanding the headwinds we talked about (H1-B visa curbs in the US, protectionism and Brexit),” he added.

The domestic infotech industry is expected to grow at faster pace of 10-11 % (in dollar terms) in 2017-18.

“We definitely see the industry to be net hirer of as many as 1.3 to 1.5 lakh people in the year ahead. This industry continues to be a substantial hirer and a substantial creator of new jobs. At the same time, there is a churn in the industry too,” Chandrashekhar said.

He said as the industry is currently driven by the digital revolution, Nasscom has decided to re-skill about 1.5 to 2 million IT professionals to equip them for future requirements.

IT sector

“Nasscom is working with its partners, members to establish a comprehensive digital platform. You will be hearing about this more during the months ahead. We expect 1.5 to 2 million people amongst the workforce to be re-skilled in the next 4-5 years.”

The size of the Indian IT industry is pegged at $ 154 billion, including $ 11 billion incremental revenues added in the previous fiscal, according to Nasscom.

“Uncertainty impacted the businesses. Whether it is BFSI segment or healthcare, all segments confronted by the uncertainty delayed the decision-making in the quest for stability. That translated into low opportunities for IT industry,” the Nasscom chief explained.

Chandrashekhar, however, was optimistic about growth of the domestic IT industry, backed by some of the Centre’s initiatives such as aiming for one trillion dollar digital economy.

Replying to a query, he said the Indian IT industry is all set to move beyond the markets it is heavily dependent on and expand footprints to newer geographies such as Continental Europe, Japan, China and Africa.

The US and the UK account for almost 80 % of the country’s IT export revenues.

Compared to Nasscom’s guidance of 7-8 % growth, Infosys expects its revenues to rise 6.5-8.5 % in constant currency (and 6.1-8.1 % in $ terms), while Cognizant has guided for 8-10 % rise in topline in constant currency terms.

Keshab Panda, MD and CEO, L&T Technology Services, said he is confident of double-digit growth.