New Delhi: Expressing relief over the end of the shutdown in the US, India Inc on Thursday said if the crisis had continued, the consequent debt default would have been "disastrous" for Indian economy and exports.
"Any disruption in the US, particularly in the all- important financial markets resulting from the political crisis, would have led to recession in the world's largest economy. Like most other countries, that would have been disastrous for India's exports, which have recently started looking up," Chairman of EEPC India Anupam Shah said.
The US Congress today passed a bipartisan bill to end a 16-day government shutdown and avert a historic debt default by the world's largest economy that could have had global repercussions.
"The end of the US shutdown is obviously good news for us," Ficci President Naina Lal Kidwai said.
The bill will fund the government through January 15, 2014 and averts default through February 7, during which time it can work toward a long-term budget agreement that prevents these frequent crisis.
"It has come as a big positive for the global economy which is still battling several difficult challenges like demand slowdown, high unemployment and low trading activity," Assocham President Rana Kapoor said.
The government shutdown is expected to end today and over five lakh furloughed federal employees are expected to return to their service.
The legislation also has provision for them being paid for the period they were furloughed.
"Recovery in the US economy is critical to revival of growth in the world economy as US is a major exports destination for many emerging economies like India. Any trouble in the US economy hits hard through various trade and finance channels," President of PHD Chamber of Commerce Suman Jyoti Khaitan said.
First Published: Thursday, October 17, 2013, 22:09