Germany has entered a recession as its Gross Domestic Product (GDP) fell 0.3 per cent in the first quarter of 2023. In the fourth quarter of 2022, it fell 0.5 per cent, thereby heaping financial misery on the country.
This development matters for the world as Germany, the world’s fourth-largest economy has long been touted as Europe’s growth engine.
India will also face a negative impact as footwear, apparel, and leather goods are some sectors that will have to bear the brunt of the recession.
In the last financial year (2022-23) India exported to Germany apparel worth US $ 990 million US footwear worth US $ 332 million and leather goods worth US $ 305 million.
Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC) believes that business will be down by a minimum of 10 per cent.
Adidas, Puma, Marc O’ Polo, Tom Tailor, S.Oliver, Escada, MCM, Hugo Boss are some of the leading brands from Germany and a few of them have good sourcing from India.
Sharad Kumar Saraf, Chairman of Technocraft Industries, Mumbai says that this is going to affect Indian exports not only to Germany but Europe as a whole since other countries are also already in recession.
