The corporate world is closely watching the ongoing diplomatic tussle between India and the US over the arrest of Deputy Consul General of India in New York Devyani Khobragade for alleged visa fraud.
Although analysts think it is unlikely to affect trade ties, industrialists are keeping a keen eye on it.
“It is a cause of concern for us. We are certainly hopeful that it would be resolved before it escalates to that level (where it can affect trade ties),” Ajay Sahai, Director-General, Federation of Indian Export Organisations, told
Analysts closely tracking the US market say delay in taking key economic decisions such as continued financial reforms, clarity on fuel pricing, and taxation, can influence ties more than the current diplomatic spat .
Trade growing The US is India’s largest destination for exports, with merchandise shipments to the country growing 8.64 per cent in the April-October period to $23.35 billion. Overall, exports from India during the period grew at a slower rate of 6.11 per cent.
The Confederation of Indian Industry said such incidents would have no bearing on bilateral economic relations if there is a quick resolution. “An appropriate solution needs to be found to avoid the recurrence of such incidents in the future,” it said in response to a query sent by Business Line .