Despite initial skepticism in India during President Obama’s election campaign (owing to his stand on outsourcing and losing jobs to other countries) United States-India political relations are at an all time high and it’s reflecting in the market places with cross border business investments as well as acquisitions. Congressman Jim McDermott’s report “How America Benefits from Economic Engagement with India” which was released recently would come as a surprise to those who believed the US-India business relationship was a one sided flow of jobs and investments out of the US and into India.

According to a news release by Rediff.com on the report

“During 2004-2009, 90 Indian companies made 127 greenfield investments worth $5.5 billion, and created 16,576 jobs in the US. During 2004-2009, 239 Indian companies made 372 acquisitions in the United States.

It is noteworthy that the software and IT services sector received less than 15 per cent of total investment, and the bulk of investments went into mining, manufacturing, and other industries, the report said.”

In fact, there is often so much news coverage and emphasis laid on the IT Services sector when US-India business relationships are discussed it tends to take the focus off the vast potential for growth and investments within other sectors on either side. The 372 acquisitions by Indian companies in the US is a clear sign Indian companies are looking to grow their businesses into developed markets like the US and make confident investments there just as US companies are actively seeking opportunities in the newer and rapidly growing markets in India. In the process, jobs are being created and doors for expansion plans through new investments as well as acquisitions are constantly being opened in both economies creating a more balanced relationship than earlier perceived by many.

Away from the media cloud created by the news around IT Services, the positive political relationship between the countries has lead to businesses on both sides of the borders stepping up their investment and growth plans moving more aggressively towards gaining a stronger foothold into the others market spaces.

Companies like McDonalds in India have announced plans to open as many as 190 new restaurants in the country while India’s Essar Group from the steel industry earlier this year acquired US-based Trinity Coal operations. These among the several other deals in the recent past are a positive example of cross border investments on the rise as the stronger political relations have paved the way for companies to grow beyond their existing borders.

With better ties and beyond the issue of outsourcing or IT Services, lie promising conditions for growth across industries from health-care, manufacturing, retail, energy, automobiles and more. There are benefits to positive business engagements for both countries in abundance if we’re willing to look at the bigger picture.