Exporters Keeping Fingers Crossed as Recession Clouds Loom Over EU

Exporters are keeping their fingers crossed in the face of "visible" recessionary trends in the European Union (EU) as it could have an impact on demand for domestic goods in that market in the coming months, given the "visible" recessionary trends in the EU. India exports about 15 percent of its total outbound shipments to the EU, making it one of the most important export destinations for Indian exporters.

The European Union is experiencing a recession. There is an energy crisis looming in the region. Buyers are delaying orders from India. They are concerned but hopeful," Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said.

The Indian exporter, however, noted that the situation in the EU provides an opportunity for Indian exporters to increase efforts to boost their sales to countries such as Russia as a result of the current situation in the EU.

The Prime Minister of India stated that India should keep looking for new opportunities in the world market and utilize all such opportunities that may be available to expand its trade.

Due to high inventories in certain key export markets, the industry has raised issues in the meeting related to the rising cost of raw materials and the subdued demand in certain key export markets due to high prices.