Home / Knowledge / News / Textiles / Greek debt crisis worries India, Pak textile sector
Greek debt crisis worries India, Pak textile sector
13
Jul '15
As the Greek debt crisis continues to fester, its possible repercussion in the European economy is beginning to worry the textile sector in India and Pakistan. In 2014, India exported textiles worth $45 million to Greece. But with the Euro now depreciating against the US dollar and the Indian rupee, the textile sector fears that exports to Eurozone will be badly hit, according to media reports.

Minister of state for finance, Jayant Sinha warned at the weekend that sectors with high exposure to the European market could suffer an impact. The European Union is one of the largest export markets for leather and textiles, and any decline in the strength of the Euro will make an already unfavourable situation worse for exporters.

The Eurozone constitutes almost 48 per cent of the Indian textile export market and constitutes 60 per cent of the leather export market.

According to a trade body official, there has been a decline of 10-15 per cent decline in Indian exports from textile and leather sectors ever since the uncertainty over Greece began to unravel five months ago.Textile exports alone in the last five months have seen a decline of around 5 per cent, exporters say.

The textile sector in Pakistan also has similar fears given that the country’s textile sector is one of the biggest trading partners of the EU.

According to financial analyst, the Euro which has shed 15 per cent against Pakistani rupee over the last 12 months, has resulted in a depressed demand as the foreign imports by EU customers become expensive. Weakening demand from Euro zone in the backdrop of looming Greece debt crisis is likely to dent exports prospects for the country and region, he added.

Investors have been advised to keep a watchful eye on the developments on Greece debt crisis before building a position in the textile sector.

The Greek economy accounts for only two percent of the EU’s GDP, but any news on the country is causing a ripple effect in the business world. While most are knee-jerk reactions, the possible impact of paying a six billion Euro loan could potentially hurt more than it is anticipated. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

Vietnam’s textile & garment exports earn $4bn in Jan-Feb

Vietnam earned $4 billion from textile and garment exports in the...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search