No immediate eco impact of US shutdown on IT sector: NASSCOM
Oct 01 2013 , New Delhi
If, however, the shutdown continues for an extended period, there will be an overall macroeconomic impact that may affect the industry. Some services such as visa processing time that depend on federal budgets are expected to see delays, according to Nasscom.
The US government today shutdown – for the first time in nearly 18 years - as the Republican and the Democrats failed to strike a deal on spending and budget mainly due to their differences over 'Obamacare', the flagship healthcare programme of President Barack Obama.
In the US, the shutdown begins from today where non-emergency service workforces have been asked to go on leave without pay.
"A majority of the business that our industry has is with the private sector and is not directly dependant on federal spending. Hence we do not see an immediate economic impact," NASSCOM said in a release.
A partial federal government shutdown is expected to cost the US in lost economic output.
NASSCOM said: "The White House has ordered federal agencies to suspend a vast array of activities shortly before midnight, after a day of frantic legislative volleying left Senate Democrats and House Republicans at an impasse over government spending and the 2010 federal health-care law."
The next steps to resolve the stalemate remain unclear at this point in time, and could take time. The earlier shutdowns in 1995 and 1996 lasted a total of 28 days, it added.