Exports Fallen By 21% - March 16, 2009

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.

10 Million People Losses Job In The Export Sector - Jan 7, 2009

Less buyers for Indian goods in the international market which is struggling the worst crisis since 1929, will led job losses for ten million people in the export sector by March this year. There will be 10 million job losses by March, A Sakthivel, Federation of Indian Export Organisations (FIEO) President said in New Delhi on Jan 6.

Indian exports, which account for just about 20 per cent of the country''s Gross Domestic Product, employing 150 million people, are a highly labour-intensive activity. The country''s exports, which reported a healthy 30.9 per cent growth rate in the first half of fiscal, contracted by 12.1 per cent in October, for the first time in the last five years. The negative trend continued in November, when exports dropped to $11.5 billion from $12.7 billion. The data for December are yet to be released. FIEO yesterday said there was no serious consideration for exporters in the measures announced by the government last week. The target for the current fiscal is $200 billion while exports totaled about $160 billion in 2007-08. Europe and North America are suffering with recession and slowdown, which account for 37 per cent of India''s merchandise exports.