Saturday, December 6, 2008

Export orders worth Rs 1,792 cr lost due to global meltdown

A survey of 125 companies, conducted by the Commerce Department, has revealed that companies lost export orders worth Rs 1,792 crore during August-October 2008 and were forced to lay off 65,000 workers.
Officials have warned of many export units closing down and thousands of jobs being lost if a bailout package is not given to exporters soon.
Exporters are suffering on many counts. While there is lower demand from foreign buyers due to recession in Western economies, banks here are not willing to honour letters of credit. This is making it difficult for exporters to fulfil the few orders they have.
In October 2008, export growth had registered a fall of 12 per cent compared to October 2007.
The official pointed out that the problem here was not of inadequate liquidity, but unwillingness of banks to give loans to exporters.
Source: Exim News Service-New Delhi, Dec. 5

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