 "Weakening of Euro to affect India's exports: FIEO")
Weakening of Euro against the US dollar will affect India’s traditional exports to the Europe, according to M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO). Commenting on the sharp decline in the value of Euro bringing it to 14 years low against the US dollar, Rafeeque Ahmed said that such sharp and deep depreciation would affect India’s exports to Euro Zone significantly, which has already exhibited a decline of 0.18% in April-Nov 2014 when it touched $ 33.27 billion as against $ 33.33 billion recorded in the same period in 2013.
Euro Zone account for about 18.5% of India’s exports and traditional sectors such as apparel ($ 6.4 billion), other textiles ($ 5.6 billion), leather & leather products ($ 3.2 billion), gems & jewellery ($ 4 billion) and machinery ($ 5.5 billion) are heavily concentrated in Euro Zone. The downward movement of Euro assumes greater significance from these sectors of exports added Ahmed.
He added that while most of the economies were contracting and deflation was being witnessed, the Greek verdict has added economic uncertainties in Europe.
Euro Zone account for about 18.5% of India’s exports and traditional sectors such as apparel ($ 6.4 billion), other textiles ($ 5.6 billion), leather & leather products ($ 3.2 billion), gems & jewellery ($ 4 billion) and machinery ($ 5.5 billion) are heavily concentrated in Euro Zone. The downward movement of Euro assumes greater significance from these sectors of exports added Ahmed.
He added that while most of the economies were contracting and deflation was being witnessed, the Greek verdict has added economic uncertainties in Europe.