India’s $2 billion exports at risk due to recession in Germany
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Budhia said, ‘In the year 2022, Germany’s share in India’s total exports was 4.4 percent. India mainly exported organic chemicals, machinery, electronics, apparel, footwear, iron and steel as well as leather goods. While it is too early to assess the impact of the slowdown in Germany on India, the above sectors will be the most affected. He added that the entire EU is facing rising energy prices, which has led to two consecutive quarters of recession in Germany. If Germany gets stuck in recession, its effect can be seen on the entire EU. He said that EU’s share in India’s total exports is 14 percent. Among EU countries, the maximum export from India is to Germany. It is followed by the Netherlands, Belgium, Italy and France.
Exports worth two billion dollars in danger
Citing a report, Budhia said that according to the Global Trade Research Initiative, the slowdown in Germany could affect India’s exports of about $2 billion. These include smartphones, apparel, footwear and leather goods. On German investment in India, he said that the recession could affect it. If we look at the FDI figures from 2000 to 2022, Germany is at number nine. A total investment of $13.6 billion has come from there during this period. It is mainly engaged in transportations, electric equipments, metallurgical industries, services sector, chemicals, construction activities, trading and automobiles.
(with input from language)
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