Exports to take severe beating if recession hits US, Europe: Experts

Domestic demand may have to cushion the external impact

Fears of a recession in advanced countries, amplified by the two consecutive quarters of GDP decline in the US, would affect exports from India but domestic demand would help its economy withstand the pressure.

Former chief statistician Pronab Sen said: “If the developed world goes into a recession, it would certainly affect our expo­rts. So, that would apply downward pressure on our economy.”

Bank of Baroda Chief Economist Madan Sabnavis concurred, saying the recession particularly in US shall affect exports from India and put pressure on the trade deficit, and hence the current account deficit (CAD).  This is because the