Business | Economy
Indian export drop prompts new subsidies
Indian exports likely slumped an annual 12 per cent in October as demand braked in major markets hit by the credit crisis, and the government may extend interest subsidies and offer other tax breaks to struggling firms.
- Reuters
- Published: 23:30 November 21, 2008
New Delhi: Indian exports likely slumped an annual 12 per cent in October as demand braked in major markets hit by the credit crisis, and the government may extend interest subsidies and offer other tax breaks to struggling firms.
Trade Secretary G.K. Pillai, citing provisional data, said exports fell to $12.8 billion (Dh47 billion) in October, a drop of 12.3 per cent from $14.6 a year earlier, underlining how hard it will be to meet a $200 billion export target for the 2008/09 fiscal year.
"We are considering a stimulus package for exporters," Pillai told a business conference. "This is being discussed. We hope to present the recommendations to the prime minister's committee next week."
Industry bodies representing the textiles and chemicals sectors, leather product manufacturers and information technology companies have presented their wishlists to the trade secretary.
Indian textile firms, which export half of their produce, mostly to the United States, Europe and Japan, have been among the worst hit by the global downturn with the top 50 companies posting an aggregate loss in the September quarter.
Jobs may go
The textile ministry estimates firms may shed a further 500,000 jobs in the next five months, Pillai said, adding to industry estimates of 700,000 lost since June.
D.K. Nair, the secretary general of Confederation of Indian Textiles Industry, said his members needed urgent help as they were battling rising raw material costs, a lack of bank credit and a demand slump in key overseas markets.
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