By SUBRATA MAJUMDER :
USA is the largest trading partner of India as well as one of the top two or three foreign investors. Given these economic dimensions between the two countries, many think that recession in USA is likely to have a major drag on Indian economy.
An important aspect of India’s exports to USA is that they are labour intensive industries. These industries are the potential hub for job creation in the country. Given these, trade expansion with USA has multi-faced implications on Indian economy, besides trade.
CONCERNS are looming over the rising recession in USA and its ripple effects on India. Surging inflation in USA, leading to successive hikes in interest rates, crippled by Russia-Ukraine war with no end in sight, disruption in supply chain owing to USA-China trade conflict have led to jitters in India over its trade and investment relations with USA. USA is the largest trading partner of India as well…
