Weakening of Euro to affect India’s traditional exports: FIEO President
Weakening of Euro will adversely affect India's Eurozone exports, which have already witnessed a decline during April-November 2014, said 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, Mr Rafeeque 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 US$ 33.27 billion as against US$ 33.33 billion recorded in the same period in 2013. Eurozone, which consists of 19 countries, accounts for about 18.5 per cent of India's exports, most of them from traditional sectors such as Apparel (US$ 6.4 billion), other Textiles (US$ 5.6 billion), Leather & Leather Products (US$ 3.2 billion), Gems & Jewellery (US$ 4.0 billion) and Machinery (US$ 5.5 billion) are heavily concentrated in Euro Zone. The downward movement of Euro assumes greater significance from these sectors of exports added Mr Ahmed. President, FIEO added that while most of the economies were contracting and deflation was being witnessed, the Greek verdict has added economic uncertainties in Europe. Syriza, a political party perceived as far-left, posted a big win in the election, triggering concerns over confrontation between Greece and other Eurozone countries and possible pull-out by Athens from the currency union.
This article was published on January 29, 2015.