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: Kai Pilger from Pexels

Textiles | On 24th Apr 2018

Pakistan’s textile exports up 7.77% in July-March FY18

The value of textile and garment exports from Pakistan increased by...

Alliance to form joint entity for safety in factories

Apparel/Garments | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Silke Brand-Kirsch
Schlegel und Partner

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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