Sharp decline in exports
10/12/2008
The Indian government is the latest to announce a fiscal stimulus package.
It has cut excise duties by 4% across the board and is planning a cash injection to boost domestic demand in the economy.
Manufacturers in some of the major sectors, including textiles, have reportedly planned cuts in production ranging from 10-50% between November 2008 and March 2009 owing to a fall in demand in the wake of the global economic downturn. As a result, the growth of the manufacturing sector could further slow down in the coming months.
A survey by the Federation of Indian Chambers of Commerce and Industry pointed out that exports of textiles plunged sharply in October 2008 compared to the same month last year, falling by around 10%.
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