Indian exports to Europe will be impacted by recession in Germany: CII

New Delhi, May 29 (KNN) India's exports from various sectors including chemicals, machinery, apparel and electronics to the European nation will be obstructed by Germany’s economic recession, said Sanjay Budhia, Chairman of the Confederation of Indian Industry (CII) committee on EXIM on Sunday.

The chairman underlined the impact of the German recession is too early on Indian exports.

Germany’s recession came in following its Gross Domestic Product (GDP) downfall in the first quarter of 2023 by 0.3 per cent and 0.5 per cent in the fourth quarter of the last year.

Contributing to a total of 4.4 per cent, last year India mainly concentrated to export organic chemicals, electronics, apparel, machinery, footwear, leather goods and articles of iron and steel to Germany.

The sectors impacted greatly by the German recession, added Budhia.

He said the rising energy prices in European Union (EU) are causing a recession in Germany from two consecutive quarters.

Around 14 per cent of India's total exports are from the EU, with Germany being the top destination of Indian exports, followed by other countries like the Netherlands, Belgium, Italy, and France.

With the largest economy facing a recession, the EU as a whole is bound to feel contractionary pressures, the chairman added.  (KNN Bureau)