Depreciation of Euro hit profits of the
exporters, as this depreciation has made shipments to the EU more
expensive. In such situations, pricing the products to fetch orders and
maintaining margins are the major challenges for exporters, said
analysts”.As per an official, any currency depreciation directly
hits the bottom line, so around 15 percent depreciation in Euro would
hit exporters’ bottom line by 10 percent. The crisis in Europe
definitely hit Indian exports, as Europe is a biggest market for Indian
export items and orders from this market are imperative for Indian
businesses ..Due to such situations, the export orders from
European markets may shift to bigger nations, who are able to control
their currency as per the situation, said an expert. Since 2008, the
garment industry of India has been in tight corners, as appreciation in
rupee affected the earnings of the exporters ..In the year 2009-10,
exports of India fell down to Rs 459.71 billion that is by 9 percent.
US accounts for almost 33 percent of the Indian clothing exports.
Overall retail sales of the US had gone up in the month of March by 2.1
percent and merely by 0.4 percent in April. However, sales in 27
countries of EU slipped by 0.6 percent in the month of February and
similar were the case in the month of March ..Now, the situation in
the US is quite better, as its retail market has started witnessing
improvement. Exporters in the industry are expecting that, they will
again start receiving orders, since they have raw materials at better
rates compared to their competitors .