India could be affected by slowdown in US economy: Report

India is at a greater risk than the other three BRIC (Brazil, Russia and China) economies in the event of a slowdown in the US economy, a study by global invesment banking firm Goldman Sachs has said.

Though India's export to US is only 18 per cent as compared to 31 per cent to Asia and Japan, it is more at risk as "the exports to the US are concentrated in jewellery and precious metals, suggesting that its trade may be fairly vulnerable to a slowing US consumer," the study said.

The United States has been "the engine of global growth" for several BRIC countries but it has not emerged as a more important export destination, 'The Globe and Mail' quoted the report.

Though, US economic growth is expected to slip to below 2.5 per cent in 2007 from 3.5 per cent this year, China will not be affected much as 44 per cent of its exports go to Asia and Japan, as compared to 21 per cent to the US.

Moreover, 45 per cent of China's exports to US are in the form of machinery and transport equipment, while the share of lower value manufactured goods has dropped to 38 per cent from 58 per cent, the study added.

The study further suggests that, Russia is also not at risk as its exports to US are concentrated in petroleum products and other natural resource commodities.

"Unless the US slowdown causes commodity prices to fall significantly (and we do not think it will) Russia should be fairly well shielded," the study said.

Article Source: http://www.share.onlypunjab.com

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