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The fortnight’s burning question. Will the US slowdown significantly affect India’s growth prospects this year?

     Print Edition: February 10, 2008

Will the US slowdown significantly affect India’s growth prospects this year?

No. Samiran Chakraborty, Chief Economist, ICICI Bank
The adverse consequences of a US slowdown can, at best, act as an additional cyclical headwind to India’s growth outlook. It is unlikely to derail the fundamentals of the growth story, which are deeply rooted in domestic drivers.

Maybe. G. Srivastava, Director and Head (Economic Policy), CII
The expected US economic slowdown may have a mild impact on India’s growth prospects. Exports to the US are 14 per cent of total exports and that share has been declining over the years. The profitability of IT services exports to the US can come under pressure, but US companies may outsource more work offshore to reduce costs.

No. Ashok Soota, Chairman and MD, MindTree Consulting
The impact of the anticipated US slowdown on the Indian economy will be marginal. India’s economic growth will continue its upward trend. However, the continuously strengthening rupee will adversely affect the growth and profitability of Indian exports and jobs will be lost in sectors such as textiles and leather.

—Compiled by Kapil Bajaj

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