Export sector sees 10 lakh job cuts
Updated: Mar 11, 2013 03:52:06pm
New Delhi, 11 Mar (KNN) Claiming that over ten lakh people lost their jobs in the export sector up to Feb 2013 of the ongoing fiscal, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has demanded government sops to boost shipments.
“A sharp decline in merchandise exports is forcing widespread job losses in the sector estimated to be over one million people during April-February 2013,” said an official statement issued by the Chamber.
Significantly, loss of employment is seen across different sectors such as leather, apparel, gems and jewellery, as per the preliminary reports.
“Even the engineering sector has been reporting a cut in headcounts,” the report adds, attributed the loss to the pressure on business units to reduce prices, in the wake of decline in demand and narrowing of margins.
The Small and Medium enterprises (SMEs) which contribute about 40 per cent to the country’s total export, employ about 170 million people across the entire value-chain, the Chamber said.
However, during the April-January period, overseas shipments declined by 4.86 per cent to USD 239.6 billion.
“The situation is quite serious and requires immediate intervention of the Government in terms of some radical steps,” the report said, adding that shipments for the current financial yearare unlikely to touch USD 300 billion.
The Chamber recommends that export income be exempted from taxation, according to ASSOCHAM Secretary General D S Rawat.
The report further states that the country’s export,particularly with regard to gems and jewelleryand petroleum products were witnessing a decreasing scope of value-addition as imports were becoming expensive.
Considering that the sector currently provides employment around 1.8 million Indians, "The problem has to be tackled at the twin level. Exports have been pushed and imports have to be made cheaper, which depends largely on the global factors. Besides currency depreciation across several economies is intensifying the cost competition," the report added.
Rawat also highlighted the big disadvantage that Indian exports suffer in terms of increasing cost of transactions and not many sops. "We expect the foreign trade policy to address the issue," he said. (KNN)
“A sharp decline in merchandise exports is forcing widespread job losses in the sector estimated to be over one million people during April-February 2013,” said an official statement issued by the Chamber.
Significantly, loss of employment is seen across different sectors such as leather, apparel, gems and jewellery, as per the preliminary reports.
“Even the engineering sector has been reporting a cut in headcounts,” the report adds, attributed the loss to the pressure on business units to reduce prices, in the wake of decline in demand and narrowing of margins.
The Small and Medium enterprises (SMEs) which contribute about 40 per cent to the country’s total export, employ about 170 million people across the entire value-chain, the Chamber said.
However, during the April-January period, overseas shipments declined by 4.86 per cent to USD 239.6 billion.
“The situation is quite serious and requires immediate intervention of the Government in terms of some radical steps,” the report said, adding that shipments for the current financial yearare unlikely to touch USD 300 billion.
The Chamber recommends that export income be exempted from taxation, according to ASSOCHAM Secretary General D S Rawat.
The report further states that the country’s export,particularly with regard to gems and jewelleryand petroleum products were witnessing a decreasing scope of value-addition as imports were becoming expensive.
Considering that the sector currently provides employment around 1.8 million Indians, "The problem has to be tackled at the twin level. Exports have been pushed and imports have to be made cheaper, which depends largely on the global factors. Besides currency depreciation across several economies is intensifying the cost competition," the report added.
Rawat also highlighted the big disadvantage that Indian exports suffer in terms of increasing cost of transactions and not many sops. "We expect the foreign trade policy to address the issue," he said. (KNN)
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