Job loss feared in export sector

Job loss feared in export sector

NEW DELHI: Seeking another round of stimulus package exclusively for exporters, the Federation of Indian Export Organisations (FIEO) on Tuesday expressed fears that the global economic meltdown would have an adverse impact on India and nearly ten million people in the export sector will face job loss by March this year.


Stating that Indian goods were not only faced with fewer buyers in the international market but also aggressive “pricing” by China, FIEO said that exports would fall short of target and would not be able to surpass the $180 billion-mark if present conditions prevail. Indian exports, which account for just about 20 per cent of the country’s gross domestic product (GDP), are a highly labour-intensive activity, employing 150 million people.


“The exporters are facing an unprecedented situation as buyers are cancelling orders and China has reduced prices in the international markets for its products. It has also made positive changes in its VAT structure to support the exports and exporters and we need a similar impetus from our Government here,” FIEO President A. Shakthivel told a press conference here. He said “the negative growth trends will continue in December and in the next couple of months. I hope we will end the fiscal with exports of about $175-180 billion.”

Source / Courtsy ' The Hindu'