ASSOCHAM predicts 10% drop in exports
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has predicted that India’s export revenues will drop by at least 10% in the 2009-10 year as a result of low demand, particularly from the US and Europe.
Its preliminary assessment suggests that exports to the US alone fell almost 60% in the second half of 2008-09. As the US is India’s largest export destination, the slowdown is likely to affect the country’s revenues for some time.
The assessment, carried out under supervision of ASSOCHAM secretary general, Mr D S Rawat, claims that the most prolific export earning sectors will remain under severe stress in 2009-10 because of lower demand and a lack of government incentives. It pinpoints a number of sectors, including leather and textiles, that are likely to suffer the most. Job losses are expected and plans to update technology are likely to be put off for the time being.
