India’s exports are unlikely to be hit on account of the US shutdown which has been going on for more than a week now, Commerce Secretary S R Rao on Wednesday said.
“I do not think so, essentially because of the thumb rule that industry in US is not led by government but by the private sector,” Mr. Rao said when asked whether the US shutdown would reverse export growth of India.
He said US businessmen are quite aggressive and will not allow the shutdown to continue. “...the US businessmen are extremely aggressive...so will they keep quiet if their businesses have shut?”
India’s exports grew for the third consecutive month by 11.15 per cent to $ 27.68 billion in September.
During the April-September period this fiscal, exports grew by 5.14 per cent to $ 152.1 billion. The US is one of the major export destinations for the country which accounts for over 20 per cent of the country’s exports.
After a gap of 17 years, the US Government has been shut since October 1, raising concerns over its impact on the world’s largest economy and also the emerging markets like India.
In 2012-13, India’s exports to the US stood at $ 36.15 billion an increase from $ 34.74 in 2011-12. The bilateral trade stood at $ 61.35 billion in the last fiscal.
India’s main exports to US include diamonds, textiles, readymade garments, carpets, leather products, dyes, iron and steel products.