Indian exports face additional costs due to delays at ports and
airports in the US in the wake of government shutdown, but sectors like
IT and pharma are likely to remain unscathed as their business is not
directly linked to federal spending.
"The shutdown of the US government will certainly hit Indian exports because of crippling of the trade facilities at the ports and airports," Assocham President Rana Kapoor said.
The US government today shutdown ¿ for the first time in nearly 18 years - as the Republican and the Democrats failed to strike a deal on spending and budget mainly due to their differences over 'Obamacare', the flagship healthcare
programme of President Barack Obama. Engineering exporters' body EEPC India today said Indian exports to the US face a demurrage threat due to shutdown in the world's largest economy.
"Commercial ports do not come under emergency service category, so there will be a delay in port services like clearing of goods from ports due to staff shortage. This may result in huge demurrage for exporters," EEPC India Chairman Anupam Shah said.
Demurrage is a charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed.
Engineering exports are close to 20 per cent of the total export basket of the country.
However, the shutdown is unlikely to affect sectors like pharmaceutical and IT atleast in the immediate term. "Indian Pharma Industry is not selling drugs to the US
Government. It is selling mostly private. So, the US government shutdown will not have any impact on the India pharma industry," Indian Pharmaceutical Alliance (IPA) Secretary General D G Shah told PTI.
For more, visit :http://www.indianexpress.com/news/us-shutdown-to-hit-exports--pharma-it-see-no-immediate-impact/1177220/
"The shutdown of the US government will certainly hit Indian exports because of crippling of the trade facilities at the ports and airports," Assocham President Rana Kapoor said.
The US government today shutdown ¿ for the first time in nearly 18 years - as the Republican and the Democrats failed to strike a deal on spending and budget mainly due to their differences over 'Obamacare', the flagship healthcare
programme of President Barack Obama. Engineering exporters' body EEPC India today said Indian exports to the US face a demurrage threat due to shutdown in the world's largest economy.
"Commercial ports do not come under emergency service category, so there will be a delay in port services like clearing of goods from ports due to staff shortage. This may result in huge demurrage for exporters," EEPC India Chairman Anupam Shah said.
Demurrage is a charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed.
Engineering exports are close to 20 per cent of the total export basket of the country.
However, the shutdown is unlikely to affect sectors like pharmaceutical and IT atleast in the immediate term. "Indian Pharma Industry is not selling drugs to the US
Government. It is selling mostly private. So, the US government shutdown will not have any impact on the India pharma industry," Indian Pharmaceutical Alliance (IPA) Secretary General D G Shah told PTI.
For more, visit :http://www.indianexpress.com/news/us-shutdown-to-hit-exports--pharma-it-see-no-immediate-impact/1177220/
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