The new workers will build a version of the Honda Civic which runs on natural gas.
Otis' Bloomington factory is closing in 2012, leaving more than 200 employees out of work.
Manufacturing is largely responsible for the state‘s increase in new jobs.
The national unemployment rate fell one-tenth of a percent last month, though Indiana’s rate remains lower.
"The last month, all of us have put the political pressure on. All of Indiana's congressmen--both senators--have endorsed the project."
A town of 500 people got a promise of as many as 63 new jobs Tuesday.
People may be becoming more comfortable with the stability of the job market, and with that more willing to take the risk of looking for a job.
A new line to produce castings for an 8-speed automatic transmission will create 58 jobs at the GM plant in Bedford.
Indiana's lack of unstructured debt and good standing in the global marketplace are strengths which tend to attract new businesses.
Mr. Obama says as long as he is President he will continue to invest in companies like Allison.