Worse hit are textiles, handicrafts, leather, plastics and gems and jewellery. The bad news is that it is not likely to get any better with the growth of global trade in goods and services expected to decline from 7.2 per cent in 2007 to 2.1 per cent in 2009 links of london charms.
India’s own exports, 80 per cent of which are fed by demand in the US and Europe, may be headed for bigger slides, by as much as between 15-20 per cent in the next fiscal if conditions don’t improve, warns A. Sakthivel, president of the Federation of Indian Export Organisation (links of london sale).
A large number of sectors like textiles, leather, chemicals, auto-components, tyres, electronics and electrical items are likely to see a fall in their exports in January-March 2009 and April-June 2009, says a survey by FICCI. Though merchandise and services exports constitute only 21 per cent of our gross domestic product (GDP), it will hit employment badly links of london.
According to FIEO the job losses could reach 10 million by the end of March-April. It is true, as Kamal Nath points out, that in an interconnected world, when all nations are being impacted, India cannot escape unscathed. But the fiscal and monetary measures can at least match needs, say exporters links of london outlet store. Even those are not enough to combat the aggressive interest rate cuts by China to push its exports amid the meltdown. While the Chinese get export credit at interest rates of 5.5-6 per cent, Indian exporters are still struggling with rates as high as 9.5-11 per cent.