Euro Zone accounts for about 18.5 percent of India’s exports and traditional sectors. The sharp and deep depreciation of the Euro would affect India’s exports to Euro Zone significantly According to Federation of Indian Export Organizations (FIEO).

Sectors of exports that are heavily concentrated in the Euro Zone are apparel (USD 6.4 billion), other textiles (USD 5.6 billion), leather and leather products (USD 3.2 billion), gems and jewellery (USD 4.0 billion) and machinery (USD 5.5 billion).

President of FIEO, M Rafeeque Ahmed said that weakening of the Euro which is at a 14-year low against the US dollar will greatly affect India’s traditional exports such as leather, apparel, textiles and gems and jewellery among others.

Euro has already exhibited a decline of 0.18 percent in April-Nov, 2014 when it touched USD 33.27 billion as against USD 33.33 billion recorded in the same period in 2013. While most of the economies were contracting and deflation was being witnessed, the Greek verdict has added economic uncertainties in Europe, he said.

According to an official release, the FIEO president added that the downward movement of Euro assumes greater significance from India’s exports and traditional sectors.