New Delhi: The Union government has accepted that the Indian economy will not be left untouched by the Euro-zone crisis. “The euro zone crisis is impacting the country's growth and is expected to hurt exports in coming months, said Finance Minister Pranab Mukherjee here on Monday.

Speaking at the inauguration of the Indian International Trade Fair 2011, Mukhejee said, “The biggest three economies of the world are reeling under unemployment, inflation and reducing incomes whereas Europe is facing severe debt crisis, making a bad impact on the Indian economy.”

The Finance Minister further said, “India’s exports this year have registered an impressive growth so far. But the increasing tendency of certain developed countries to adopt protectionist measures during a downturn is not just a matter of great concern for our economy but for the growing economic activities in the world as a whole.”

The exports grew at 52 percent in the first half of the current fiscal but prolonged European crisis can hamper the growth of our exports, he added.

It is to be noted, the exports fell to 10.8 percent low in October after witnessing a welcome improvement of 36.3 percent in September.
 
He said, “At a time when European Union and United States are reeling under economic depression, emerging economies like India have hogged the centre-stage as the new players on global level.”

He added, India was not much affected by the recession in 2008 and emerged quickly from the crisis.

JPN/Bureau