Indian exports likely to get affected by slump in US economy

New Delhi, Oct 31 : Finance Minister P. Chidambaram today said that the slump in the US growth rate might affect the Indian exports, but the impact would be lesser compared to the Chinese economy.

Addressing a news conference here, Chidambaram said that slow growth rate of the developed countries would have an indirect impact on the Indian economy as it is more domestically oriented.

"If the growth in developed countries slows down it will have an indirect impact on India but the Indian Economy is a domestic consumption investment driven economy. Exports play a significant role but not as much as they do in China. We have not been able to estimate the impacts on export," he added.

Experts say that the Chinese economy would have to face the repercussions of the American consumers lowering their spending owing to the current recessionary trends.

Though the affect would be felt by the Indian economy also, but the affect would be lesser than that on the Chinese economy, which has been depending heavily on the export shipments to the United States to gain momentum.

The U.S. trade deficit with China hit a record 256.2 billion dollars in 2007.

ANI