April 11, 2018 / 6:35 AM / 3 months ago

BUZZ-Indian pharma, IT sectors face biggest risk from U.S. protectionist moves - Nomura

** India’s pharmaceutical and IT services companies to face the biggest risk from U.S. protectionist moves - Nomura

** Washington launched a challenge against Indian export subsidies at the World Trade Organization last month, saying they hurt U.S. companies by letting Indian exporters sell goods more cheaply

** About 78 pct of India’s exports benefit from export promotion schemes; any measure to curb incentives will have adverse impact on India’s export competitiveness - Nomura

** Protectionist moves by U.S. can directly impact sectors such as IT services, pharmaceuticals, textiles and precious metals

** Pharmaceutical sector, which is largely dependent on exports, will be adversely impacted as export incentives are material contributor to profitability - Nomura

** Although Indian IT services have not benefited materially from incentive schemes, they face headwinds from tighter U.S. immigration laws, which can hit margins

** Impact is likely to be lower for other exporting sectors such as autos and engineering goods, Nomura adds

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