Some of the Indian companies, which have invested in Europe, have been adversely impacted by the sovereign debt crisis and they expect decline in business prospects, a survey has said.
Industry body Ficci said that majority of 30 firms, which participated in the survey, expect that the current economic situation in Europe would linger on for the next few years.
"Indian companies doing business or which have invested in Europe have been adversely impacted," it said.
About 75% respondents said they have reported decline in their business prospects and also a loss of over 20% in business generation from the European region.
Half of the Indian firms have started looking beyond Europe, it said, adding they have begun to gradually look for opportunities in African countries, the Middle East, South Asia and even in North America.
"To maximise their benefits in terms of reduced demands in European markets, Indian manufacturers are aggressively pursuing new business plans. These include increased imports of high-end machinery and technology from Europe due to highly competitive prices being offered by European exporters," it said.
The survey said the ongoing crisis in the nations like Greece, Spain and Italy is the manifestation of larger issues and economic ills plaguing the European economies today.
Over 13% respondents have stated that rather than facilitating foreign investments and businesses, the respective European government has made its processes more stringent in obtaining and renewing long-term visas, work permits, family and dependent visas and overall ease of doing business in the region.
"Getting a business visa remained the most worrying issue for them (Indian firms) to effectively engage the European economies," it added.
