The Hindu : Tamil Nadu / Chennai News : U.S. investment in India will go up further, says Attorney

Online edition of India's National Newspaper
Tuesday, Nov 27, 2007
ePaper

Tamil Nadu

Tamil Nadu - Chennai

U.S. investment in India will go up further, says Attorney

Special Correspondent

CHENNAI: The U.S. investment in India is on the rise over the last few months and will increase further, even as the dollar is getting weaker by the day, U.S. Attorney Michael Kraus said here on Monday.

“It is cheaper to produce goods in India, but it is expensive to export goods from India as the buyers are not willing to renegotiate the contracted price. The dollar is likely to go down further in the days to come,” he told The Hindu.

Later addressing members of the Indo-American Chamber of Commerce on ‘Doing business with USA,’ he urged Indian entrepreneurs to set up firms in the U.S. and explained the advantages and tax benefits offered by different States. “Compared with India, it is neither expensive nor time-consuming to set up firms in the U.S. It can be established even by a single person with $1 and, that too, within a day. There is also no need to have minimum capital.”

The outbound investment from India during 2006-2007 was $2 billion through 46 deals, with information technology-enabled services accounting for 48 per cent. Small and mid-sized deals, ranging from $20 to $60 million, occupied the centre stage, and more such deals were in the offing.

Due diligence

“If you are planning to acquire firms in the U.S., do it with due diligence with regard to the technical, financial and legal aspect properly. Don’t go for firms that offer service at lesser rates. Due diligence does not lead to closure of deal. It opens an argument on purchase price. Probably, you could get the company for a better rate.”

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu