New Delhi: Global economic crisis has hit India where it hurts the most as over a dozen job-oriented export sectors slipped into disarray showing up to 70% negative growth last month over a year-ago period.
Alarmed by sharp decline in export value in tea (-20%), handicrafts (-70%), carpets (-32%), oil meals (-50%), man-made yarn (-17%), cotton yarn (-19%) and marine products (-19%), the Commerce Ministry is likely to recommended lifting of export curbs on items like steel and agro products.
At a high-level meeting, convened by Commerce Secretary G K Pillai on 24 October, it was pointed out that the government needs to “re-look” at all the export restrictions.
“The global financial crisis is significantly impacting the Indian exports and the impact could be more in the coming days,” an official involved in stock-taking exercise told PTI.
With several sectors putting up a dismal show, the overall export growth in September this fiscal plunged to a little over 10% from 26.9% in August.
Exports for the April-August period had shown growth of 35.1%.
The US and the 27-nation European Union bloc, two of the largest markets for Indian exports, are in the midst of the worst economic crisis since Great Depression of the 1930s.
The volume of decline in the international trade is also reflected in the crash in the shipping rates. Rates for bulk cargo have dropped by nearly 50%.
Ironically, dismal export performance in September - figures for which are yet to be officially released - has come about in the face of close to 25% depreciation in rupee value. A declining rupee results in better realisations for the exporters.