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November 12, 2007 18:00 IST
A majority of CEOs and MDs have advocated creation of alternative markets in economies other than the US to face adverse repercussions arising out of US sub-prime crisis on Indian economy, an Assocham survey said.
The survey on 'Need for Policy Measures to Absorb Implications of US Sub-Prime Crisis on domestic economy' revealed that 63 per cent of the respondents advocated evolvement of contingency plan by the government especially for sectors like textiles, garments, apparel and gems and jewellery sectors.
According to the respondents, tax concessions for exporters of textile products, gems and jewellery would not mitigate their current sufferings as US crisis would continue for many more months to come.
The CEOs have also sought advanced strategies for liberating rural India's vast but latent demand for goods through investment in rural infrastructure at mega scale, a chamber release said.
However, 26 per cent of the respondents felt that there was no need to have any contingency plans as Indian Inc was gaining out of global slowdown and rupee firming up over 12 per cent is triggering manufacturing in the country as a result of decline in input costs.
"Of total 280 respondents, 73 CEOs and MDs were of the firm view that the size of American economy is such a huge that even if it strikes a growth rate of 3 per cent in the current fiscal, it is as good as that of India's 9 per cent GDP growth and therefore American market will always be able to absorb Indian exports of quality," the release said.
The CEOs and MDs were also collectively of the view that Indian economy is gaining out of so-called global slowdown as its imports have registered acceleration resulting in decline of inputs costs which is a good sign for manufacturing activities in India.
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