Bloomberg reported that Indian exporters expect to cut about 10 million jobs by March as the global recession prompts overseas buyers to cancel orders. Indian exporters currently employ about 150 million people.
Mr A Sakthivel President of the Federation of Indian Export Organizations said that "The year 2009 is going to be the worst year in the history. Exporters don't have orders beyond January and if the present trend continues, there will be approximately 10 million job losses."
Mr Sakthivel said that India will miss its target of USD 200 billion in exports in the 2009 fiscal year amid weaker demand. He said that "Exporters are now facing new challenges due to the financial crisis. Fresh orders are drying up due to lower demand and buyers are canceling earlier orders or rescheduling the shipments."
According to a survey done by ABN Amro Bank, overseas shipments dropped by 9.9% to USD 11.5 billion in November from a year earlier after contracting 12.1% in October, the first decline in 7 years. Output at factories and utilities also shrank in December.
Mr NR Bhanumurthy an economist at the Institute for Economic Growth said that "The slowdown phase will continue for some months. Recent monetary and fiscal policies might ensure that industry does not enter a recessionary phase."
Mr Montek Singh Ahluwalia deputy head of India's planning commission said that the measures are intended to steer Asia's third largest economy through the worst quarter of the global slump. Growth in the USD 1.2 trillion economy has slowed for 2 straight quarters, with the 7.6% pace of expansion in the three months to September 30th the weakest in 4 years.
Source : Bloomberg