New Delhi, April 21 -- While the Indian economy is relatively insulated from a slowdown in the United States, the stock markets of both countries show a strong correlation, according to a report by investment bank and financial services firm Goldman Sachs.

The report highlighted that India's economy is less exposed to a slowdown in the US when compared to other countries, mainly because of India's lower trade dependency.

It said, "While the Indian economy is relatively insulated from a US slowdown compared to other markets that have higher trade with US, there is a strong correlation between Indian equity markets with the US market".

India's merchandise exports make up for around 12 per cent of its GDP, whereas in China it is 19 per ce...