Date:13/11/2008 URL: http://www.thehindu.com/2008/11/13/stories/2008111361241900.htm

Business

Slowdown, an adjustment process, says U.S. official

M. Rajeev

Looks at emerging sectors as drivers of growth

U.S. delegation comprising SMEs on a
three-city visit
Several countries take aggressive approach
to tackle impact

HYDERABAD: Even as the slowdown in the U.S. economy continues, Assistant Secretary for Commerce, Israel Hernandez, is confident that the strong fundamentals of the economy will ensure that it will not come to a halt.

Significant parts of the economy have slowed down and there is a wide variance of opinion about how long it will continue. “We see the slowdown as an adjustment in our economy. Some experts see it bouncing back shortly while some others say it will take longer, nobody really knows. But, we have the right infrastructure to make the adjustments,” Mr. Hernandez said.

The U.S. official was here as part of a three-city visit of a delegation comprising the small and medium enterprises of the U.S. that are “seriously looking” at business opportunities in India. Speaking to The Hindu, he said more than $500 billion of the $700 billion bailout package was yet to be implemented and the infusion would be made in the days to come.

President-elect Barack Obama and the U.S. Congress were likely to announce “second stimulus package” to revive the economy and the slowdown was expected to continue for few more months. Admitting that the slowdown resulted in thousands losing jobs, he, however, termed the present situation as an “evolution” taking place. The U.S. was continuing to receive huge investments despite the slowdown as it continued to be an open market. “Closing our borders to others is the last thing to do,” he said. Several countries, including the European Union and China were taking aggressive approach in addressing the impact of U.S. slowdown on their economies, he said.

On the impact of Mr. Obama’s remarks on cutting down outsourcing processes of the U.S. companies on trade ties with India, he said there was a need for ‘more specificity’ to the comments and “we will know what exactly he wanted to say in the months to come.” Mr. Obama, however, made it clear that the strategic relation with India that further strengthened with the civil nuclear deal would continue.

Even as the concentration was on evolving new instruments for balance and protection of consumers’ interests, the U.S. economy was looking at nano technology, aerospace and life sciences as drivers of growth.