India has been the destination of choice for American companies lately.
Motorola announced Wednesday, June 7, it will spend as much as $100 million to build a handset manufacturing plant near the southeastern Indian city of Chennai. Meanwhile, Big Blue — IBM — said one day earlier it would invest $6 billion in India during the next three years. With that generous sum, IBM intends to open a new service delivery center in Banglaore, a telecommunications research center at its India Research Lab, and hire additional staff for its specialized software and services lab, also in Banglaore.
It's not just the big technology companies that are making investments in India. During the last couple of years, many U.S.-based venture capital firms have put the country on their radar. New Enterprise Associates, for example, is about to to close the largest venture capital fund ever at $2.5 billion with the intention of putting some of that money into the information technology sector, with a good probability that some of its investment will be directed to India. "If U.S. venture capitalists don't already have an office or operation [in India and China] they're actively pursuing a strategy of how they can best enter and take advantage of opportunities in that market," Darrell Pinto, director of private equity performance at Thomson Financial said in a recent Daily Deal article.
Look for that sentiment to continue, with the flow of money to the Indian subcontinent growing in tandem, something investors won't be able to ignore. — Gerald Magpily
See article from TheStreet.com
See article from VNU.net
Continue reading below
