Eurozone woes may hit exports: FM

WASHINGTON: Finance Minister Pranab Mukherjee today said the country's exports could be impacted if the the lingering debt crisis triggered by Greece spreads to more European economies.

"If it (the Eurozone debt crisis) spreads, then it may have (some impact on our exports). Therefore, it is necessary that it should be confined to those countries," Finance Minister Pranab Mukherjee told PTI in an interview here.

The European crisis began after Greece came close to defaulting on debt repayment in late 2009. The turmoil in Europe assumed the proportion of a contagion with countries such as Spain, Portugal and Hungary facing debt crisis.

However, Mukherjee said at present there is "not much" impact of the crisis on the country's exports. These countries accounted for only about 4 per cent of total exports of $176 billion last fiscal. But overall, the EU countries accounted for 23 per cent of total overseas consignments last fiscal.

Referring to the bilateral relations with the US, the Mukherjee said the bilateral economic ties are expanding fast. "Despite the slowdown, I think, international trade is expanding both ways," he said.

Meanwhile, Indian ambassador to US Meera Shankar said the trade between the two countries grew by 26 per cent in the first three months of 2010.