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Obama re-election may aid faster economic recovery: Chambers

Last Updated: Wednesday, November 7, 2012 - 22:08

New Delhi: Industry bodies Wednesday said the re-election of President Barack Obama is expected to revive the US economy which will have positive impact on India as well as the rest of the world.

"Ficci expects the new administration to set the US economy firmly on the path of revival and robust growth. This would be of great significance for the world economy and Indian exporters should be looking at a sustained rise in demand in the US," Ficci said in a statement.

The new administration under Obama would take both long-term and practical view of issues such as outsourcing "which ultimately are in the US national interest because they help US companies drive down costs paving the way for expansion," Ficci President R V Kanoria said.

Obama today won a historic election to get a second term as US President, overcoming a stiff challenge from Republican Mitt Romney defying concerns over his handling of economy and anxiety over the future.

Assocham also expressed hope that "the US economy will recover fast as the Indian economy is deeply integrated with it."

Assocham President Rajkumar Dhoot said that with Obama's re-election the untapped trade opportunities between India and US will be tapped and US companies will hugely invest in the infrastructure development opportunities that India provides.

"The US is the largest economic partner of India and 60 percent of our software exports are directed towards it," he said.

The Assocham chief further said it was heartening that India has reiterated its commitment to continue with the reform process which, indeed, will help economic development of the country and also provides opportunities for countries like US to invest.

With regard to high-tech transfers, Ficci said that it is expected that the second Obama administration will carry forward the momentum that had been setting in towards the last days of the first Obama administration.

"US-India energy cooperation will reach a greater point with possibility of North America becoming a energy superpower with the discoveries of Shale and Oilsands," Ficci said.

Confederation of Indian Industry (CII) President Adi Godrej said a wave of optimism has swept among Indians across the world over an expectation that Obama's second-term will take India-US relations to the next level.

"We are confident that the administration will continue to build on existing pillars while at the same time explore new avenues for partnership to address both bilateral and global challenges," he said.

Indian industry is hopeful that both nations will continue to strengthen economic ties by lowering barriers to trade and investments and foster a climate which is conducive to growth of businesses on both sides, he added.

Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said re-election of Obama as President of America will provide stability and will ensure India's deeper economic engagement with the US.

He said India's exports to the US has shown a remarkable growth, despite contraction in demand and overall decline in India's overall exports.

During April-September this year, India's exports to the US grew 15 percent to USD 19.61 billion from USD 17.24 billion in the corresponding period last year.


First Published: Wednesday, November 7, 2012 - 22:08
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