New Delhi: The economy of India, the world’s sixth-largest, may falter because of the second wave of Covid-19, creating drag for the global economy, the US Chamber of Commerce said on Monday, days after other rating entities, including the International Monetary Fund (IMF), maintained that India’s GDP could grow in double-digits in 2021-21.
Myron Brilliant, Executive Vice President of the Chamber, the biggest US business lobby, said the risk of spill-over effects was high given that many American companies employ millions of Indian workers to run their back-office operations, media reports said.
“There’s a big concern about the drag on the US economy by a devastating, spreading virus in India.”
The Chamber and CEOs from 40 firms on Monday launched a public-private task force to provide India with urgently needed medical supplies, oxygen, and other assistance and unveiled a new portal where U.S. firms can offer in-kind donations.
The partnership also includes the US-India Business Council, the Business Roundtable, and the US-India Strategic Partnership Forum, the Chamber said.
Chamber officials and the CEOs met with Secretary of State Antony Blinken and White House adviser Kurt Campbell on Monday to discuss the depth and breadth of the economic and humanitarian crisis facing India.
The United States and other countries, as also global behemoths like Google and Microsoft, have pledged urgent aid to try to contain the emergency.
Many U.S. companies had already pledged to provide financial assistance, logistics, and transportation support, and key medical supplies including oxygen generators and concentrators, the Chamber said.
U.S. goods and services trade with India totaled USD 146.1 billion in 2019, according to the U.S. Trade Representative’s office. India was the ninth-largest U.S. goods trading partner, with some $92 billion in two-way trade in 2019, media reports added.
(VP)
