Euro Zone Crisis: Bad Days for Indian Companies

Bangalore: Indian companies doing business or have invested in Europe are feeling a pinch of crisis in the Euro Zone, reveals the study done by the  Federation of Indian Chambers of Commerce and Industry (FICCI)on ‘Ongoing Economic Scenario in Europe and its Impact on Indian Industry.’

73 percent of the Indian companies, among the 30 Indian companies participated in the survey, said they have already suffered a loss of more than 20 percent in their businesses from the region since the crisis has begun, reported Business Standard. Meanwhile 18 percent of the respondents said there was a 5 to 10 percent decline in their businesses.

FICCI survey reported over half of the companies looking beyond Europe to keep their balance sheets stable. It said, “These companies have begun to gradually look for greener pastures in African countries, West Asia, South Asia and even in North America.”

About 13 percent of the companies participated in FICCI’s survey said that during the current turmoil, instead of facilitating foreign investments and businesses, the respective governments of European countries have made processes even more stringent getting and renewing long-term vises and work permits. Getting a business visa is always a toothache in these European countries, said the respondents of the survey.

Meanwhile, a tenth of the total respondents wanted the Indian government to act favorably, by providing subsidies and lower duties for promoting India-EU trade.