Finance, Forex and Investments

if Euro currency value reduce will India Economy affect?

is it good for India if Euro currency value reduce. plz give explanation on this.

Public Comments

1. Fluctuation in any valid international currency against Indian Rupees may affect Indian economy as follows: 1) Importers would be benefited 2) Exporters would be affected Although Indian currency has become stable and also partially convertible, exporters' earning in Indian Rupees against payments in US Dollars for their exports has a set back by 10 % or so.. Garment & knitwear exporters are unable to compete with China and Thailand. Price wise there are no changes in the raw materials used for the manufacture. So also the wages. When you quote your price in USD or Euro, and the exchange rates appreciate, the exporters will definitely be affected. Now the knit wear exporters are switching on to quoting their prices in Euro and they propose to concentrate in finding import sources in Europe. Nevertheless our economy is steady and our currency is convertible (unofficially) in most of the Asian countries and in the Middle East. There is no question about its stability. Our Banks with the support of RBI are internationally recognised.None of the East Europeon Banks, Sri Lankan & African including South Afican banks are being trusted for any international trade Bank of China ( unless the transaction is from Hong Kong) also falls under this category. .