NEW DELHI: With a sharp decline in demand for merchandise in the recession-hit major economies of the world, Indian exporters will have a
tougher time ahead, global rating agency Moody's said.
"...Tough times for Indian exporters will last for some time yet as giant economies such as the US is still deep in recession," Sherman Chan, an economist with Moody's economy.com, said.
India's exports, which have been on a decline since October last year, fell by 21.7 per cent in February -- the worst performance in 13 years -- to USD 11.91 billion from USD 15.22 billion in the corresponding year-ago period.
"The result is unwelcome, but not surprising. The current global economic environment is perhaps the worst in decades," Chan said.
The government has revised the export target for the 2008-09 fiscal to USD 175 billion, from USD 200-billion.
She added the government would continue to be under pressure to support struggling export-oriented manufacturers in the coming months.
Noting that the country's import bill has also been quickly shrinking, she said, "Imports would remain in the negative territory in the coming months, reflecting the still-subdued global commodity prices and also a decline in domestic demand."
Source : The Economic Times