Home / Knowledge / News / Textiles / US downgrade & Euro zone debt crisis to hit Indian exports
US downgrade & Euro zone debt crisis to hit Indian exports
Aug '11
The down grading of US from AAA grading ,which it held since 1941,to a notch below to AA+ by S&P will have mixed impact on Indian economy but it is certainly not good for Indian exports said Mr Deora, President FIEO. The world largest economy is entering into depression while Euro zone is in debt crisis and thus our worst fear that exports in third and fourth quarter will be affected may come true said the FIEO President.

The down grading will lead to further appreciation of rupee against dollar which is already facing the heat in India, thereby blunting our competitive edge but more importantly US government will have to increase taxes to bring in more people under the tax net to curtail its deficit which will further shrink their disposable incomes and may have an impact on India's exports to North America, said Ramu S. Deora, FIEO Chief.

Garments, handicrafts, leather, gems and jewellery would be the most affected sectors besides IT said President, FIEO. He demanded that Government should immediately help the exports sector with interest subvention, reduction in transaction cost and upgrading infrastructure particularly ports and road.

In the post-recession era, the US is no longer India's top export destination. In 2010-11, India exported $19.53 billion worth of goods to the US, with imports being $16.97 billion. However, India's exports are picking up with $11.85 billion worth of goods export to US in the first six months of 2011.

However, US $ weakening will benefit imports ,there by pushing pressure on domestic manufacturing as well said Mr Deora.

FDI will flow to India but we need to create climate for the same by ushering in the second generation of reforms in taxation and investment policies including launching of GST, observed Mr Deora. This would lead to appreciation of the Indian rupee but would ease the burden of widening current account deficit in the short term.

Federation of Indian Export Organisations (FIEO)

Must ReadView All

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Casper raises total funding of $240 million

Casper, the global sleep company launched three years ago has...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search