The global economic downturn has started hitting Indian exporters. With their overseas markets, such as the US, facing a big meltdown, garment industry owners and export houses in Gurgaon are shutting shops. Several have already left, hoping to find better alternatives elsewhere in the country.

Says Ashwini Chachra, co-owner of Supreme Craft Export that also owns Satyam Cinemas in Delhi: “I had an annual turnover of Rs 90 crore from my four readymade garments and fabric units that employed around 2,000 people. With practically no orders in hand and due to costly labour and electricity charges, there was no alternative but to shut the units after paying the compensation for the notice period.” The four properties are up for rent or sale, whichever is earlier.

A recent study by Dun & Bradstreet revealed that the financial crisis had started feeding into the real economy in the US and that the situation would improve only in 18 to 24 months. “Almost 6,700 companies filed for Chapter 11 bankruptcies in the US in 2008, compared to 3,600 in 2006,” it noted.

US is the single largest destination for Indian exporters, accounting for almost 13 per cent of exports last year. Though it is difficult to put any number to job losses here because of the global slowdown, industry insiders said many employees on contract had to face retrenchment. “The job losses could be as high as 10 to 12 per cent, and more could follow in the coming months,” said an exporter, who did not wish to be named.

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