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Impact Of Germany’s Recession: Exporters of Uttar Pradesh are facing a double blow this year. First, America’s increased tariffs slowed down the pace of business, now Germany’s recession has created new problems. Business has become sluggish due to decrease in orders in leather, textile and engineering sectors. If the situation remains like this then further pressure on exports may increase in the coming months.
Kanpur : This year is proving to be full of challenges for the exporters of Uttar Pradesh. It is noteworthy that due to lack of any relief in tariffs from America, business has been adversely affected. Earlier, where most orders were received from the American market, now a huge decline in demand is being seen from there. Due to increased tariffs, Indian products have become expensive, due to which major sectors like leather, textile and engineering have been most affected.
Amidst the challenges of America, Germany’s recession has also increased the problems of exporters. The huge decline in demand in Germany, one of the largest markets in Europe, has slowed down the pace of business. Earlier there used to be continuous orders from there, now due to economic slowdown the companies have stopped new deals. The leather and handicraft industry of Kanpur is facing this impact the most.
The pace of export has stopped
According to the report of Federation of Indian Export Organization (FIEO), exports from UP were worth Rs 3460 crore from April to July in the year 2024-25, whereas in the same period of 2025-26 it could reach only Rs 3640 crore. That means a nominal increase of only Rs 180 crore. Whereas earlier an average increase of Rs 500 crore was recorded every quarter.
Pressure on exporters may increase
Kanpur’s leather businessman Prerna Verma says that both the American tariff and the German recession have given a big blow to the business. Now businessmen will have to find new opportunities in the countries of Asia, Africa and the Middle East. Sunil Vaish, former national president of IIA, said that America and Germany have been major export markets for a long time, but this time the slowness from both sides has increased the concern. Experts believe that if the situation does not improve soon, further pressure on UP’s exports may increase in the coming months, which is sure to affect the state’s economy.
