Eurozone crisis hits Indian exports: FICCI survey
21 Jun 2010
Wild swings in the value of the rupee in the wake of the Eurozone debt crisis has adversely affected India's exports, a survey carried out by the Federation of Indian Chambers of Commerce and Industray (FICCI) showed.
With the country's trade with the European Union accounting for nearly a quarter of the country's total foreign trade, the wild fluctuations in the rupee value vis-a-vis the euro is undermining the country's export prospects, the survey has pointed out.
The slide in the value of the European common currency in the wake of the Greek debt crisis is expected to hit the country's exports, the survey pointed out.
This, combined with an expected rise in interest costs to exporters and rising raw material costs, is likely to end the current momentum in the country's exports, the survey pointed out.
India's exports grew at over 35 per cent year-on-year in May 2010 although growth in imports was much higher around 42 per cent during the period.
Exporters have called for a more stable rupee to ensure that the wild swings in some of he Western currencies do not affect the current growth momentum of the country's exports.