The tie-up between India and US seems to have benefited the US as Indian companies buy 143 US companies in the last two years. Many Americans have managed to hang on to their jobs in the times of economic recession. 

The acquisition has been across various sectors. During 2007-08, 94 deals were closed. In the following fiscal, during tough economic times, 50 US entities that were on the verge of closure were bought, thus saving many jobs.

A joint study by FICCI and Ernst & Young said that Reliance Communications, Wipro, Tata Chemicals, and Firstsource Solutions were some of the best Indian companies that helped bail US companies out of trouble. IT, ITeS, pharmaceuticals, and manufacturing were the major sectors which saw the deals being closed.

Indian IT sector has been expanding in the US market over the years. The acquisitions were debt financed, with cash being a common mode of payment. This extends from the preference of India Inc to deal with cash transactions in the domestic acquisitions and mergers.

The report of Ernst & Young says that growth in the Indian economy over the last 3-4 years made the domestic companies rich and provided them to use more capital than previously. One of the important factors behind the acquisitions has been the liberal policies by RBI and the government towards overseas investments.