Financial Storm to hit India - One crore job loss

Exports from India are expected to plummet by more than fifth as the global slowdown slashes demand for Indian goods. Commerce Secretary G.K. Pillai indicated that overseas sales could decline to $11.5 billion from $14.7 billion a year ago.

Exports in the developing economies began to slide after the global financial crisis froze credit markets and sent developed economies towards recessions. The sector is witness more slowdown outstripping previous months slide which is a stark evidence of the Asia's third-largest economy becoming the victim of recession.

"The government should immediately come up with more relief measures for exporters. Otherwise the export sector will be in a very bad shape," said A. Sakthivel, President of the Federation of Indian Export Organisations.

Dip in India's export by 22 percent in January along with the ongoing financial crunch is likely to take away one crore jobs in labor-intensive industries in the current fiscal ending March, forecasts Federation of Indian Export Organizations (FIEO).

Reeling under the downturn, industries like textiles, garments, chemicals and gems and jewellery had cut production by 10-50 percent. As per a recent survey by Commerce Ministry, over one lakh people have already lost jobs upto January 15.

"Textile garments and handicraft sectors were the worse affected. Together they are set to lose more than 4 million jobs by April 2009. Other sectors that could lose anywhere between 5 and 10 lakh jobs each include gems and jewellery, chemicals and engineering and auto component sectors," Ajai Sahai, Director General of FIEO told The Economic Times.