India, like some of the other major emerging economies, has high exposure to euro zone economies and risks the effects of Europe's economic woes, according to a new global index by risk analysis firm Maplecroft.
India ranks 85th in a list of 169 countries outside of the euro zone that have close economic linkages with the euro zone economies, even as the United Kingdom ranks the most affected non-euro nation because of its close ties with the other European neighbours, says the Maplecroft study.
India's ranking in euro zone linkages though lower compared to some of its peers like South Africa (which is ranked 49th), Russia (50) and Brazil (62), it is classified among `high risk' countries in the report.
China, however is ranked 112th in the risk list and is rated among countries with medium risk exposure.
Although the BRICS economies represent a potential offset to the negative impact of the euro zone economic crisis due to their size and wider linkages, "These economies are not fully insulated from the slowdown themselves due to trade and investment relations with Europe and an escalating euro zone crisis could further exacerbate current domestic slowdown in growth forecasts across the BRICS," Maplecroft said.
The UK, because of its geographic location, historic links and high level of economic integration with the countries of the European Union, ranks as the most vulnerable non-euro nation, according to Maplecroft.