The continued deterioration of the Greek debt crisis may not only affect the European economy, but also make the textile sectors of India and Pakistan begin to worry. It is reported that India exported US$45 million in textiles to Greece in 2014. But with the euro falling against the dollar and rupee, India is worried that textile exports to the euro zone will be severely hit.
From recent reports in foreign media, we learned that Indian Finance Minister Jayant Sinha said over the weekend that companies with a lot of business in the European market will be affected. The EU is one of the largest exporters of furs and textiles, and the fall of the euro has made the situation even worse for exporters.
The Eurozone accounts for 48% of India’s textile export market and 60% of its fur export market.
According to official sources, India’s textile and fur exports have fallen by 10%-15% since the crisis in Greece five months ago. Exporters said that the export volume of textiles alone fell by about 5%. Pakistan also has the same concerns, as the EU is one of the country’s largest trading partners for the textile industry.
According to financial analysts, the exchange rate of the euro against the Pakistani rupee has fallen by 15% in the past December, causing the EU region to reduce demand as foreign imports are too expensive. Amid the Greek debt crisis, weak demand for textiles in the Eurozone will affect Pakistan’s exports.
Industry insiders suggest that investors first pay attention to the development of the Greek debt crisis when investing in the textile industry. Although the Greek economy only accounts for 2% of the EU’s GDP, every move made by Greece will cause a chain reaction in the business community.
