Euro Crises affect global economy

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Effect on global economy
Euro zone crises not only affect economies of
17 member countries but also effect all other
countries US, china, India to African countries
Effect on India
About 22-28 percent of revenues of Indias top tech
majors come from Europe whose revenues will
definitely be affected.
Export driven sectors such as textiles and software are
likely to bear the brunt.
Indias exports to Europe could witness a slump close
to 10%.
FII investment pattern marked with high volatility
Decline in tourist visits from Europe
Weak INR
Affect the unemployment in lower income category

Indian government action to avoid
economic slowdown
Export focus shifted from western countries to
emerging economies
Decision to open FDI upto 51% in multiband retail
Reduction in interest rates.
In order to reduce the government deficit it has reduced
some subsidies on Oil & Gas products.
India encouraged to develop some alternative such as
biofuel, which can reduce its dependency on crude oil
Encouraged foreign firms to set up their R&D facility.