In a warning, the United States Chamber of Commerce said the Indian economy because of a constant spike in Covid 19 situation may result in a drag for the global economy.
Myron Brilliant, an executive vice president of the Chamber, the biggest US business lobby, said on Monday iterated that risk of spillover effects remained high as many of the US companies employ millions of Indians for their back office functions.
"We expect that this could get worse before it gets better," Brilliant told the Reuters news agency, citing a "real risk" the Indian economy would falter."There's a big concern about the drag on the [US] economy by a devastating, spreading virus in India."
The surge in cases appears to already be affecting the Indian economy. Further the Bloomberg agency reported that high frequency data point to deepening contraction in India's retail activity in the week through April 18 relative to its pre-pandemic January 2020 level.
So the key risk remains as consumption makes up about 60% of the country's GDP. And now as per Brilliant, the focus is on extending help to Indians. The Chamber as well as 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 in which US firms can offer in-kind donations.