According to Sanjay Budhia, chairman of the CII Committee on EXIM, the German economy is currently experiencing a recession, which is anticipated to have an influence on India’s exports to Germany in a variety of industries, including chemicals, machinery, garments, and electronics. However, he claimed that it is still too early to determine how the economic downturn in Germany will affect India’s exports.
Germany, the fourth-largest economy in the world, is in recession as a result of a 0.5% loss in GDP in the fourth quarter of last year and a 0.3% decline in the first quarter of 2023.4.4% of India’s total exports to Germany in 2022 were made up primarily of commodities from the organic chemical, machinery, electronics, apparel, footwear, iron and steel, and leather goods industries.Although it’s excessive early to see the impact of Germany’s recession on India’s exports, the sectors mentioned above will likely be the ones most affected,” he told PTI.Citing a report, he said the think-tank Global Trade Research Initiative (GTRI) has estimated that the recession will impact India’s exports of value USD 2 billion, including products like smartphones, apparel, footwear and leather goods.
Looking at India’s FDI from 2000 to 2022, Germany ranks 9th in the total FDI inflow, and it has cumulatively invested over USD 13.6 billion in areas like transportation, electrical equipment, metallurgical industries, services sector (particularly insurance), chemicals, construction activity, trading and automobiles.
