(Views expressed in this article are the personal opinion of the author.)
It is somewhat surprising that the "Fiscal Cliff" which has been the hottest topic in the US for several weeks failed to evoke any interest in Indian business circles, particularly the exporters of consumer goods, who know quite well, how important the US retail market is for them. As this phenomenon entailed no less than going out of something like $600 billion, which would have particularly hit the US middle and upper middle class, could have had a serious impact in terms of their purchasing power, on which the US spending rests, for the major part.
It is not that the threat is completely over, but, yes, one hurdle has been overcome which enabled the US public to heave a sign of relief. President Obama and Senate leaders struck a bipartisan agreement to let income taxes rise sharply for the first time in two decades, fulfilling Obama's promise to raise taxes on the rich and avoiding the worst effects of the 'fiscal cliff'. The agreement, brokered by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) passed 89 to 8 in a highly unusual New Year's morning vote. It now heads to the House, where leaders have not guaranteed passage but top officials believe it could win passage in the next few days.
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