India : US downgrade & Euro zone debt crisis to hit exports

The down grading of US from AAA grading ,which it held since 1941,to a notch below to AA+ by S&P will have mixed impact on Indian economy but it is certainly not good for Indian exports said Mr Deora, President FIEO. The world largest economy is entering into depression while Euro zone is in debt crisis and thus our worst fear that exports in third and fourth quarter will be affected may come true said the FIEO President.

The down grading will lead to further appreciation of rupee against dollar which is already facing the heat in India,