Weakening of euro to hit India's traditional exports: FIEO

Weakening of euro will adversely affect India's eurozone exports, which have already witnessed a decline during April-November 2014, a top industry body said today.
"Such sharp and deep depreciation of euro against US dollar would affect India's exports to eurozone significantly, which has already exhibited a decline of 0.18 per cent in April-November 2014, when it touched USD 33.27 billion as against USD 33.33 billion recorded in the same period in 2013," Federation of Indian Export Organisations (FIEO) President M Rafeeque Ahmed said in a release here.
Eurozone, which consists of 19 countries, accounts for about 18.5 per cent of India's exports, most of them from traditional sectors.

Sectors such as apparel (USD 6.4 billion), other textiles (USD 5.6 billion), leather & leather products (USD 3.2 billion), gems and jewellery (USD 4.0 billion) and machinery (USD 5.5 billion) are heavily concentrated in the region, which have adopted euro as their common currency.
The downward movement of euro assumes greater significance from these sectors of exports, Ahmed added.
The last weekend's poll verdict in Greece, a eurozone member, has added economic uncertainties in Europe, he said.
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 pullout by Athens from the currency union.