The White House ordered government agencies to begin shutting down after
the Democratic-led Senate and Republican-controlled House refused to
back down in a clash over scaling back President Barack Obama's landmark
health care law as the price for essential federal funding.
The shutdown threatens to slow growth and spook investors worldwide. While, the shutdown will impact a lot of US citizens, economic affairs secretary Arvind Mayaram said that as of now, a shutdown of the US government is not likely to have a major impact on the Indian economy. Here's how the shutdown will affect Indians.
1) New visa issuance: Indian IT companies earn a big chunk of their revenues from the US so a prolonged shutdown may affect their business. TV Mohandas Pai of Manipal Global Education told NDTV that if the shutdown in the US goes beyond 15 days, it will impact issue of new visa. However, since the visas are user-funded, they may continue for now. Fresh year for US visas start on October 1, Mr Pai said, so a delay of 10-15 days is ok.
2) Rupee may come under pressure: The Indian rupee has recovered sharply in September, but it could come under pressure according to eminent economist Arvind Virmani. "While this uncertainty lasts in the US, there will be hesitation in giving new orders in investment and exports. This will weaken our exchange rate," Dr Virmani said.
3) Sensex could be volatile: Financial markets could become skittish, Dr Virmani said. Central banks of all countries are aware of it and they will try to not have disruptions including our central bank of India, Dr Virmani added.
4) Global markets: If there is volatility in global markets, it will also affect Indian stocks. The Dow Jones Average in the US fell for the seventh day in eight sessions overnight.
5) Global economy: Dr Virmani said it's unfortunate that every time global economy looks like it will recover, we have this unfortunate thing in the US. It's very sad for everybody, he added.
The shutdown threatens to slow growth and spook investors worldwide. While, the shutdown will impact a lot of US citizens, economic affairs secretary Arvind Mayaram said that as of now, a shutdown of the US government is not likely to have a major impact on the Indian economy. Here's how the shutdown will affect Indians.
1) New visa issuance: Indian IT companies earn a big chunk of their revenues from the US so a prolonged shutdown may affect their business. TV Mohandas Pai of Manipal Global Education told NDTV that if the shutdown in the US goes beyond 15 days, it will impact issue of new visa. However, since the visas are user-funded, they may continue for now. Fresh year for US visas start on October 1, Mr Pai said, so a delay of 10-15 days is ok.
2) Rupee may come under pressure: The Indian rupee has recovered sharply in September, but it could come under pressure according to eminent economist Arvind Virmani. "While this uncertainty lasts in the US, there will be hesitation in giving new orders in investment and exports. This will weaken our exchange rate," Dr Virmani said.
3) Sensex could be volatile: Financial markets could become skittish, Dr Virmani said. Central banks of all countries are aware of it and they will try to not have disruptions including our central bank of India, Dr Virmani added.
4) Global markets: If there is volatility in global markets, it will also affect Indian stocks. The Dow Jones Average in the US fell for the seventh day in eight sessions overnight.
5) Global economy: Dr Virmani said it's unfortunate that every time global economy looks like it will recover, we have this unfortunate thing in the US. It's very sad for everybody, he added.
No comments:
Post a Comment