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Unemployment, Financial crises are the major issues for every body. These days people are frequently going through the words like Global economic meltdown, International financial slowdown, Recession etc. Many of the people are highly affected by the results of all these. This fire dragon is burning everything by throwing the fire all around. These resulting drastic changes in lifestyle of many in score of ways.
Currently we are going frequently through the sentences telling the peril effects of this global economic slowdown on numerous company employers of various sectors. This downturn, of course left negative marks on business too. Many businesses are going through and facing effects of this economic evil, commonly named as ‘Global Meltdown’. The effect of this slowdown on business sector is resulting directly in a negative way on its various phases including export-import sector, which is one of the crucial parts of any kind of business.
Regarding this, the report of Federation of Indian Export Organisation (Fieo) tells that the manufacturing Industries here, have recorded steepest decline in the sector of export-import. This proved correct when we take a look of exports done in some industries. This reveals that the handicraft export stepped down by 54 per cent in December 2008 as compared to that in December 2007. While Gems& Jewelry, one of the segments most affected by economic slowdown and the textile industries are contracted by 27 & 21 per cent respectively. This gives us broader idea about the effects of economic meltdown on export-import trade.
While talking about the worldwide export-import trade in the current scenario of meltdown, ‘The exporters need to diversify to Asia & Africa to escape from the recession in traditional markets in the west’ – are the words of Director-General of Research and information systems for developing countries. This reveals that exporting goods or products from Asian & African countries could be proved as the helping hand for getting free from the recession in western traditional markets to some extent. This obviously is excellent for the countries in Asia & Africa, which in tern is the chance for them to broaden their horizons in the export sector.
Among all the Asian countries if we talk particularly about India then according to the Union Commerce Secretary, Mr. Pillai, India’s export performance is much better as compared to the rest of Asian countries. The two countries with major economies have released their January export figures, which are extremely lower than those of India. ‘Vietnam’, which is one of the countries having major economies has a negative growth rate of 24.2 per cent and ‘South Korea’, another country having major economies has 32 per cent of negative growth rate. While in case of India, in October the merchandise exports were decline by 12.1 per cent which was improved to 9.9 per cent in November and just dropped down by 1.1 per cent in December. This shows India’s excellent export performance in comparison with other Asian countries.
At here, the government needs to pay the crucial role by taking some major steps. It needs to provide some social security to the retrenched workers in the export sector, as exporters were loosing out because competing countries like China, which referred as a global export powerhouse. China had provided additional concession to their exporters, which has had beneficial for them to price their products more competitively.
Government needs to fulfill the demands of exporters. It should continue the stimulus packages to boost the economy in the year 2009-10, for getting rid of global slowdown. During the coming fiscal the public expenditure needs to be stepped up to counter the slowdown.
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