Exports dive 20%; job losses feared

Apex body asks for PM's intervention

India’s exports declined more than 20 per cent in August. The ninth consecutive month of fall in overseas shipments has raised fears of cost cutting by the firms and consequent job losses.

Exports contracted by 20.66 per cent in August to $21.26 billion, government data showed, attributing it a global slump in demand and falling commodity prices.

The sharp decline in exports of engineering goods by about 30 per cent, leather and leather goods by 13 per cent, apparel by about 7 per cent, petroleum products by about 48 per cent, and marine products by about 21 per cent contributed to dismal performance in overseas shipments.

Federation of Indian Exporters Chairman S C Ralhan said that at this rate, job losses were imminent. He also demanded an intervention by Prime Minister Narendra Modi in the matter.

“With the export orders coming down every month, it is a natural process that the companies will look for cost cutting and the workers will be removed,” Ralhan said, adding that the 20 per cent decline in exports will hasten job losses.

Sectors such as gems and jewellery, pharmaceuticals and ceramics products which were showing modest growth in exports have also declined from last month.

The FIEO chief said that the main reason for decline in engineering goods exports seemed to be the increase in the duty on steel products without corresponding increase in drawback rate which has compelled many small exporters to opt out of contract.

Imports too declined by 9.95 per cent to $33.74 billion due to about 120 tonnes of gold import in August.