Exporters Keeping Fingers Crossed as Recession Clouds Loom Over EU

Exporters are keeping their fingers crossed due to "visible" recessionary trends in the European Union (EU) as it could affect demand for domestic goods in that market in the coming months. The EU is one of major export destinations for Indian exporters, accounting for about 15 per cent of India's total outbound shipments.

"There are visible symptoms of recession in the EU. Energy crisis is looming there. Buyers are delaying orders from India. They are concerned but hopeful," Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said.

He, however, added that the situation in the EU provides an opportunity for Indian exporters to enhance efforts to boost exports to countries like Russia.

He has stated that India must keep prospecting for new opportunities in the world market and utilize all such possible chances to expand trade.

In the meeting, industry has flagged certain issues related to the rising cost of raw materials and subdued demand in certain key export markets due to high inventory levels.