Export decline to cost 10 mn jobs

New Delhi, Exporters have warned that 10 million people will be out of job by March but the reduced export decline in December raised hopes of stability returning to overseas trade, battered by the global economic crisis.

Exports fell for the third straight month but the decline of 1.6 per cent in December to USD 11.2 billion was much smaller than the 9.9 per cent decline in November and 12.1 per cent in October, an official said.

The Federation of Indian Export Organisations (FIEO) President A Sakthivel said exporters, mostly in textiles, gems and jewellery and leather products, would be forced to lay off 10 million people by March. Export units, which account for about 20 per cent of India's Gross Domestic Product, are highly labour-intensive, employing 150 million people. The country's exports, which posted a robust 30.9 per cent growth rate in the first half of the fiscal, started shrinking from October. As a result, the April-December expansion was reduced to half.

"The negative trends will continue in the next couple of months. I hope we will end the fiscal with exports of about USD 175-180 billion," Sakthivel said.

However, the Commerce Ministry hopes that exports would stabilise.

PTI