Special Correspondent

NEW DELHI: India Inc has favoured the creation of alternative markets in economies other than the U.S. to face adverse repercussions arising out of the U.S. sub-prime crisis on Indian economy.

A majority of CEOs and MDs who participated in Assocham’s survey on ‘Need for policy measures to absorb implications of U.S. sub-prime crisis on domestic economy’ advocated evolvement of contingency plan by the government especially for sectors such as textiles, garments, apparel and gems and jewellery sectors.

According to the respondents, tax concessions for exporters of textile products, gems and jewellery will not mitigate their current sufferings as the U.S. crisis will continue for many more months to come. They have also sought advanced strategies for liberating rural India’s vast but latent demand for goods through investment in rural infrastructure on mega scale. The CEOs and MDs have also felt that the Indian economy was gaining out of the so-called global slowdown as its imports have accelerated, resulting in a decline of input costs.