Continued US shutdown would have disastrous: India Inc breathes sigh of relief

**New Delhi:**Expressing relief over the end ofthe shutdown in the US, India Inc today said if the crisis hadcontinued, the consequent debt default would have been"disastrous" for Indian economy and exports.

[caption id=“attachment_1178483” align=“alignleft” width=“380”]  Capitol Hill. Reuters[/caption]

“Any disruption in the US, particularly in the all-important financial markets resulting from the politicalcrisis, would have led to recession in the world’s largesteconomy. Like most other countries, that would have beendisastrous for India’s exports, which have recently startedlooking up,” Chairman of EEPC India Anupam Shah said.

The US Congress today passed a bipartisan bill to end a16-day government shutdown and avert a historic debt defaultby the world’s largest economy that could have had globalrepercussions.

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“The end of the US shutdown is obviously good news forus,” Ficci President Naina Lal Kidwai told PTI.

The bill will fund the government through January 15,2014 and averts default through February 7, during which timeit can work toward a long-term budget agreement that preventsthese frequent crisis.

“It has come as a big positive for the global economywhich is still battling several difficult challenges likedemand slowdown, high unemployment and low trading activity,“Assocham President Rana Kapoor said.

The government shutdown is expected to end today and overfive lakh furloughed federal employees are expected to returnto their service.The legislation also has provision for them being paidfor the period they were furloughed.

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“Recovery in the US economy is critical to revival ofgrowth in the world economy as US is a major exportsdestination for many emerging economies like India. Anytrouble in the US economy hits hard through various trade andfinance channels,” President of PHD Chamber of Commerce SumanJyoti Khaitan said.

PTI