A crisis in the Eurozone is likely to hit India’s export sector as the bloc is one of the top trading partners.
“More than 20 per cent of India’s exports are to Europe,” says Mr Gopal Agrawal, deputy CIO, Mirae Assets. So which sectors would take a beating?
“Export driven sectors such as textiles and software are likely to take a hit,” says Mr Aneesh Srivastava, CIO, IDBI Fortis Life Insurance.
India’s top tech majors get 22-28 per cent of their revenues from Europe, says Ambit, a brokerage house. A fall in the value of the Euro would hit their revenues.
The Euro, which was at Rs 67.4 at the beginning of the year is now worth Rs 56.4 — that will have a direct impact. Moreover, slower growth in this area will mean slower growth for firms in these markets.