India's exports to U.S. may get impacted due to Federal Govt shutdown : EEPC
NEW DELHI: Indian shipments to the U.S. are likely to get affected following the shutdown of that Country’s Federal Government, exporters said.
“The shutdown of the U.S. Federal Government is certainly a bad news for the Indian exporters since the American economy is among the largest destinations for (India’s) exports,” said Ravi P Sehgal, Chairman, EEPC India — the Apex Body for Indian engineering exporters.
“For the (India’s) engineering sector, the U.S. is the number one export destination, giving a robust growth in the current financial year. Between April-December period of the current fiscal, (India’s) engineering exports to the U.S. grew by over 50% to $7.5 billion,” Mr. Sehgal said in a statement. With as many as 60,000 employees of the U.S. Commerce and Transportation Departments being furloughed, port operations as also the clearing (of shipments) would be hit, he said.
India’s exports to the U.S. in April-October this fiscal were $27.09 billion or 16.27% of the total exports of $166.46 billion in the period. In 2016-17, exports to the U.S. were $42.2 billion, or 15.3% of the overall exports of $275.85 billion. With imports of $22.3 billion from the U.S in the last fiscal, the trade balance to the tune of $19.9 billion was in India’s favour. The U.S. was the topmost Country with which India has registered favourable trade balance during FY’15, FY’16 and FY’17, according to information given by Commerce and Industry Minister Suresh Prabhu in Rajya Sabha.