India's footwear, textile exports vulnerable to global slowdown: Report
The Hindu
A projected slowdown in U.S. and European Union countries will impact domestic labour-intensive sectors such textiles and footwear, Crisil Ratings said in a report
A slowdown in 2023 in advanced economies, especially the U.S. and the eurozone, is expected to make India's footwear and leather products export trade vulnerable, said Crisil Ratings.
"Domestic labour-intensive sectors such as textiles, footwear, and leather depend significantly on these two regions, making them particularly vulnerable to a slowdown in these economies," it said in a report titled 'The Slowdown Shadow'.
It said since these regions being two of India's largest export destinations, a slowdown in their economies would lower demand for Indian exports.
Many economists and global institutions earlier projected to a global slowdown in 2023, as the impact of continued monetary policy tightening across major economies manifests.
Raising interest rates typically cools demand in the economy and thus helps in managing inflation, but it also has the potential to trigger a slowdown in overall economic activities.
"Advanced economies are expected to bear the brunt as they aggressively pursued monetary tightening in 2022," Crisil said.
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