The exports of India are estimated to have fallen 21 per cent in the month of February, which is a decline for fifth straight month. This is the biggest contraction in exports this fiscal that reflecting the demand collapse for Indian goods in the developed economies, which are bleeding under recession. While official data is yet to come out, but an official said that the exports in the penultimate month of the fiscal 2008-09 are set to shrink to about $11 bn as against $14.23 bn in the corresponding period last year.
Along with this, he said even the exports target, which was changed earlier to $175 bn from $200 bn for 2008-09 would be hard to meet. The exports during April-January 2008-09 have aggregated to $144.26 bn, showing a growth of 13.2 per cent. The value of merchandise shipments expanded by 21.62 per cent in the corresponding period last year. The exports after showing impressive gains till September 2008-09 went into negative zone from October when the contraction was 12.1 per cent.
However, the Federation of Indian Export Organizations (FIEO) President Sakthivel said, by looking at the falling trend it is very difficult even to achieve the target of $175 bn for the current fiscal. We can at best touch $168 billion. He said that the falling trend would continue till September and may be after that there would be any possibility of revival of exports. The US and the European Union contribute about 35 per cent to the country''s exports. With these economies in recession, the demand for overseas goods in these countries have shrunk. The textile as well as handicrafts, leather and leather goods are the worst hit sectors.
Along with this, he said even the exports target, which was changed earlier to $175 bn from $200 bn for 2008-09 would be hard to meet. The exports during April-January 2008-09 have aggregated to $144.26 bn, showing a growth of 13.2 per cent. The value of merchandise shipments expanded by 21.62 per cent in the corresponding period last year. The exports after showing impressive gains till September 2008-09 went into negative zone from October when the contraction was 12.1 per cent.
However, the Federation of Indian Export Organizations (FIEO) President Sakthivel said, by looking at the falling trend it is very difficult even to achieve the target of $175 bn for the current fiscal. We can at best touch $168 billion. He said that the falling trend would continue till September and may be after that there would be any possibility of revival of exports. The US and the European Union contribute about 35 per cent to the country''s exports. With these economies in recession, the demand for overseas goods in these countries have shrunk. The textile as well as handicrafts, leather and leather goods are the worst hit sectors.
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