Indian exports to dip 20% : Assocham

New Delhi, Nov 9 (UNI) Indian exports are likely to slide by about 20 per cent of its target of 200 billion dollars in 2008-09 due to recessionary trends, says an analysis.

Global slowdown, particularly in the United States, European Union and ASEAN countries to which bulk of exports are headed, and heavy domestic pressure could chop off 40 billion dollars worth of exports in the current fiscal, adds the analysis by Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Seven key export segments such as textiles, apparels, gems&jewellery, diamonds, brass ware, handicrafts and leather are already reeling under recessionary trends, it says.

Accepting that exports of grains, raw jute and petrochemicals have not been that bad, Assocham says exports of these items do not bring in as much foreign exchange as are brought in by high value-added products such as readymade garments, diamonds, jewellery, gems, carpets, handicrafts and brass ware.

Besides the slowdown syndrome, rising ocean freight rates, weakening rupee dollar exchange rate and deepening recession in the US and European markets would restrict Indian exports, the study says.

However, prospects of pharma and chemicals, heavy engineering, metal and marine products, as also of FMCG remains reasonably good as these continue to command demand not only in domestic market but also on export fronts in economies of West Asia, Far East and African continent and the SAARC region, says the industry chamber.

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