The next unemployment in Export Segment.
Exporters, reeling under the impact of recession in the US and other major markets, are pinning their hopes for some sops. But unfortunately the ministry level declined rather refused to provide any sops or any tax incentives till next Budget. Indian goods find fewer buyers in the international Lay-off Coming to terms with lay-off market which is battling the worst crisis since 1929.
Indian exports, which account for just about 20% of the country's Gross Domestic Product, are a highly labour-intensive activity, employing 150 million people. The country's exports, which posted a robust 30.9% growth rate in the first half of fiscal, contracted by 12.1% in October, for the first time in the last five years. The negative trend continued in November, when exports fell to $11.5 billion from $12.7 billion.
Europe and North America, which account for 37% of India's merchandise exports, are reeling under recession and slowdown.
Most of the exporters do not have orders beyond February and would need immediate government help failing which exports may not even reach the 170 billion dollar mark, against the target of 200 billion dollar. But still the government dreams that it will achieve its target. It seems that that the government is only busy to achieve that figure irrespective of the problems suffered by the exporters’ community.
Besides, this around 10 million people out of the total workforce of 65 million in export sector would be out of jobs by March.
As per FIEO there is no "serious consideration" for exporters in the measures announced by the government in the meeting as it was expected.
I will like to draw the attention that what ever interest rates have been reducedby RBI few month back, all the funds were invested by banks in G securities rather than passing it to the plummeted industries across the board. Rs180000 cr was released through rate cuts and 70% of it went in to g securities through banks who are busy in improving their margins. At the same time the credit terms are no longer easy and rather the refusal percentage is more .So obviously the industry is going to face tough fund crisis and rasing loans.
The quarterly results of banks have started coming where all eyes are on profit growth. I am asking to all my readers that before you invest your money in banking sector please go through the growth of loan disbursement followed with deposits. Since what ever profit growth is shown is earned through interest on loans.
So it seems that the 10 million will lose jobs by March in export units and government is not focused and interested to understand their problems.