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Indian services sector to be affected if US changes policies post elections | Canindia News

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Indian services sector to be affected if US changes policies post elections

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CanIndia New Wire Service 0 comments

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Chennai, Sep 23 (IANS) Indian services sector and other Asian economies shipping out high-value added manufacturing products to the US would be impacted due to any retrenchment from trade and investment ties and curbs on immigration, said credit rating agency Moody’s Investors Service.

In a statement issued on Friday, Moody’s said the credit implications for Asia Pacific sovereigns of a potential shift in US policies after the November 8 presidential election would materialise through changes in trade and investment if the next US administration adopts less proactive foreign engagement over time.

According to Moody’s, US policies under the next administration could range from a continuation of the status quo to a gradual retrenchment from trade and investment ties and curbs on immigration.

In general, the credit implications for Asia Pacific sovereigns’ were likely to be limited due to direct exposure to a potential slowdown in US imports is generally small.

“However, Asian economies whose exports to the US are focused on high value-added manufacturing products are more vulnerable to policies that disincentive foreign sourcing of business services,” Moody’s said.

According to Moody’s, Malaysia, Taiwan and Korea would be the most vulnerable to efforts to repatriate high value-added manufacturing jobs.

India and the Philippines would be exposed to any policies that discourage US businesses from foreign sourcing of services, the credit rating agency added.

Further remittances to Asia could weaken if the US tightened immigration rules, Moody’s added.

–IANS

vj/ksk

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