Indian exporters have only USD 50 mn exposure to Cyprus, worries on Spain, Greece and Portugal
Updated: Mar 28, 2013 10:59:25am
New Delhi, Mar 28 (KNN) India thankfully has only a USD 50 million export exposure to near-bankrupt Cyprus but the anxiety among the Indian exporters has risen because of other vulnerable but bigger economies like Spain, Greece and Portugal.
“We have minuscule trade with Cyprus…USD 50 million. It is very low in relation to our total exports of about USD 300 billion.
But (any problem in) Greece, Portugal and Spain would have an impact on Indian exports because they are big members of the European Union with which we have a high level of trade,” Director General of Federation of Indian Export Organisations (FIEO) Ajay Sahai told KNN.
Euro 10 billion international bailout package for Cyprus may have given some relief to the debt-ridden small European economy, but the capital controls on remittances out of the country has made global suppliers nervous.
Though Indian exports to Cyprus are small, the near-bankruptcy of the country has shaken confidence of those doing business with other vulnerable countries like Portugal, Greece and Spain.
India has approximately USD 5 billion to Spain, Greece and Portugal.
The European Union members remain one of the important markets for the Indian merchandise exports. India’s exports to some of the big countries in the EU like Germany have also suffered a setback because of general slowdown in the European markets. Micro, small and medium enterprises (MSMEs) account for 40 per cent of India’s USD 300 billion.
Cyprus was near bankruptcy and the international bailout has been given to the small country on the condition that it will shut its second largest bank Cyprus Popular causing immense pain to the investors who have deposits in excess of Euros 100,000. Russian depositors who had kept their money there too have burnt their fingers in the process.
It is feared that with the shut-down of one of the main banks, the trust in the banking system would take a knock. The entire business environment is likely to get affected. Banks will open only on Thursday. (KNN)
“We have minuscule trade with Cyprus…USD 50 million. It is very low in relation to our total exports of about USD 300 billion.
But (any problem in) Greece, Portugal and Spain would have an impact on Indian exports because they are big members of the European Union with which we have a high level of trade,” Director General of Federation of Indian Export Organisations (FIEO) Ajay Sahai told KNN.
Euro 10 billion international bailout package for Cyprus may have given some relief to the debt-ridden small European economy, but the capital controls on remittances out of the country has made global suppliers nervous.
Though Indian exports to Cyprus are small, the near-bankruptcy of the country has shaken confidence of those doing business with other vulnerable countries like Portugal, Greece and Spain.
India has approximately USD 5 billion to Spain, Greece and Portugal.
The European Union members remain one of the important markets for the Indian merchandise exports. India’s exports to some of the big countries in the EU like Germany have also suffered a setback because of general slowdown in the European markets. Micro, small and medium enterprises (MSMEs) account for 40 per cent of India’s USD 300 billion.
Cyprus was near bankruptcy and the international bailout has been given to the small country on the condition that it will shut its second largest bank Cyprus Popular causing immense pain to the investors who have deposits in excess of Euros 100,000. Russian depositors who had kept their money there too have burnt their fingers in the process.
It is feared that with the shut-down of one of the main banks, the trust in the banking system would take a knock. The entire business environment is likely to get affected. Banks will open only on Thursday. (KNN)
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