Exports losing steam, may lead to job losses: FIEO

India's exports plunged 20.19% in May to $22.34 billion

The continuous decline in exports may result in job losses and impact economic growth, exporters body FIEO said on Saturday.

"Based on the order booking position, exports may significantly decline in volume terms in months to come, which will result in layoffs," Federation of Indian Exports Organisations (FIEO) President S C Ralhan said in a statement.

"If exports continue to move in the negative territory, it will sooner or later put pressure on CAD (current account deficit) and may derail the rebuilding of economy."

Contracting for the sixth month in a row, India's exports plunged 20.19 per cent in May to $22.34 billion, mainly due to global slowdown and drop in crude prices, which have impacted overseas shipments of petroleum products.

He wanted the government to immediately initiate dialogue with the industry to understand the challenges and revisit its strategy to support the exports sector.

"The world economy is in a challenging phase and is entering a "dangerous stage" which will have ominous implications for India," Ralhan said.