The Business Standard
New Delhi May 7, 2010
The euro zone crisis could trip the fundraising plans of Indian companies at home and abroad and dent confidence, while euro鈥檚 weakness will hurt exporters selling in the currency.
Analysts fear the crisis in the euro zone would impact equity markets worldwide, including India, and companies may be forced to defer fundraising plans.
A weaker euro would also hit IT exports as many companies had pegged their exports to Europe in euro. This would hit profits and companies are trying to counter it by taking hedges. While exporters would take a hit, businesses that import from Europe could gain.
http://www.business-standard.com/india/n鈥?/a>
The Economic Times
19 Jun 2010
European Commission (EC) head Jose Manuel Barroso denied that the euro was doomed, saying it was one of the strongest currencies in the world, in an interview published Saturday in Italy..
"The euro is one of the strongest currencies in the world and ranks second as a global currency," he said, adding, "We have a lower debt level than the United States or Japan."
http://economictimes.indiatimes.com/mark鈥?/a>
what probable impacts in our investments / exports to Euro zone would ensue?|||Hello! I am studying economics and find really interesting everything that actually links theory with real-world. I would guess you are an Indian and hence your economical expertise of your country should be greater than mine. What I can say is that Euro zone is starting to promote supply-side free market policies ( long-run ), they try to retrench the economy (during the recession! ), even though some may consider we are coming out from it, this would mean cutting budget deficit and cutting AD ( hence economic growth ), this may be lethal during the recession. Hence for India and other trading partners of EU ( although I would guess most of the trading is done in the Euro zone ), foreign demand for exports will fall, hence hitting balance of payments and if you rely on export led growth to take you out from recession and if EU is one of your main trading partners then there may be problems. Depreciation of euro may also make exports less competitive. All in all, India is an emerging market and many businesses see it as place to out-source, as there is high pool of cheap labour, its a different time-zone (providing 24/7, for call centres for instance ),etc. meaning businesses may still invest in India and even though there may be some downward movement in growth, it is still part of BRIC and in the long-run Indian economy is expected to be strong, hence the significance may not be great.|||Its all going up, at least in India...trust me.|||i suggest u http://bizhelpp.0fees.net/
i hope it will be helpful in resolving your problem keep using answers.yahoo.com|||my one humble opinion is -
human beings as a whole can be considered as sheeps (semmariyaadu) if one tumbles at one spot tha others will pursue it without any valid reason and also called as jackels when one woos the others will also join that! and economy or sharemarket is not a vidhivilakku to it
regarding the paadhippu of exporters my questions is when the value of euro comes down they beat on their mouth and stomach and start oppaari. but when or if it goes up ?
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