Euro Zone Crisis: Bad Days for Indian Companies

According to the survey, almost all of the respondents unanimously said that the ongoing crisis in the nations like Greece, Spain and Italy is the manifestation of larger issues and economic ills plaguing the European economies today.

As much as 60 percent of the Indian companies expected the current economic situation to persist for the next two to three years, the survey by the Chambers said. However, a one-fifth of the surveyed companies showed optimism that the economic situation will improve soon within a year.

Positive Feelings on the Current Crisis

According to Business Line, the survey felt that despite the number of policy and regulatory impediments, India’s outbound investments in the EU may see smaller deals, but the activity will continue. Moreover, the survey added, “A number of Indian companies are viewing the current economic crisis as an opportunity to enhance their investments.”

Amid this sickening crisis, as positive developments, the Indian manufacturers are intensively chasing new business plans, such as more import of high-end machinery and technology from Europe due to highly competitive prices being offered by European exporters. This would have long-term follow ups for Indian industry, in terms of added capacities and reduced capital expenditure.

Europe is the largest trading partner of India, absorbing around 20 percent of India’s outbound shipments.