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Will Euro crisis hurt India's external trade?
Jun 16, 2012


Policy makers in India are worried about the impending adverse consequences of the ongoing Eurozone crisis. One of the biggest impacts would be on India's external trade. The European Union accounts for about one-sixth of India's exports. In the event of a full-blown crisis in the Eurozone, India's exports would be severely affected. However, there may also be a silver lining for exporters. The European countries have so far dominated export markets of Africa and Asia. But the current debt crisis has hampered their economic growth significantly. This puts Indian exporters in a favourable position to target these markets. The Indian government has doled out some special incentives in the form of focused market schemes to encourage diversification of exports to these markets. Today's chart of the day shows India's export and import trade with the European Union over the last six years.

Data source: The Economic Times
*April to September 2011

This Chart Of The Day was published in The 5 Minute WrapUp - This Buffett test helps distinguish Coke from Kodak

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