Indian monthly exports fall by largest on record
India’s exports for March have fallen by a record amount as the country missed a revised export target of $175 billion.
In 2007-08, the country posted export growth of 23 percent valued at $155.51 billion.
According to figures released by the ministry of commerce in March exports were valued at $11.52 billion, which is down 33 percent from this time last year where exports registered $17.25 billion.
The 33 percent fall is the single biggest fall since April 1995 when data began.
In a bid to ease the pressure on the economy, Duvvuri Subbarao, the governor of the central bank, reduced interest rates last week to prop up the economy that is growing at its slowest pace in over 6 years.
According to the Federation of Indian Export Organisation, exports are likely to continue to fall until September and this is probably going to cost the Indian economy around 10 million jobs.
The reverse repurchase rate is at its lowest on record as the government attempts to respond to the faltering economy.
In order to stimulate demand the government will introduce three stimulus packages in the form of tax cuts and infrastructure projects.
As a result of the falling demand the Associated Chambers of Commerce and Industry of India have forecast a further 10 percent fall during 2009 through to 2010.
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