India is likely to miss the export target of $200-billion by 5-10% this fiscal as exporters face payment defaults, price cut and order cancellations with deepening of global financial crisis.
"Feedback from the apex chambers of commerce and different export promotion councils (EPCs) suggests that the target for the current year is unlikely to be achieved," a top official said.
He said with the worsening situation in the global markets, the number of exporters not realising the dues from buyers in the US and Europe would "increase substantially".
Several EPCs have informed the Commerce Ministry about the "noticeable decline" in export orders, cancellation of pro-forma invoices, re-negotiation of orders and prices by buyers and slowdown in export realisation.
The recession in the key markets, is likely to result in cash flow difficulties for exporters, delay in execution of orders in hand and high cost of insurance cover.
After showing a handsome growth of 30.9% for the first half of the current fiscal, exports slipped into negative territory. Exports decelerated by over 12% in October.
The government had set the $200-billion target after the exports grew by over 23% to $162 billion in 2007-08.
So far, over 700,000 workers have been laid off in the textile industry, while 100,000 people have lost jobs in the gems and jewellery sector.
The second stimulus package under consideration of Prime Minister Manmohan Singh is likely to provide further relief to the exporting sector.
The first package had extended the concessional loan from 90 days to 180 days.
