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.

According to Krishan Kapoor, chairman and general secretary of the Haryana Industrial Association (HIA), if the situation does not improve by the end of this year, Gurgaon may see “35-40 per cent companies shut down completely”. In fact, India’s exports grew at the slowest pace in 18 months in September.

“The recession has affected practically all sectors here — be it garment exporters, automobile spare part exporters or the information technology (IT) and the IT-enabled services sector. Companies are either closing down or are terminating the services of their employees as a cost-cutting measure, or not giving increments,” explained Kapoor.

Most of these export houses and garment manufacturers were severely affected when the dollar took a plunge in 2007. “Since the payments are made in US dollars and not Indian rupees, exporters had to bear the losses. If companies fail to fulfil the commitments made by them, they are blacklisted,” said Kapoor, adding that since countries such as China and Pakistan did not face such problems, they increased their share in the global trade.

Over 100 companies had then packed up their units in Gurgaon and shifted to other states like HP and Uttaranchal where electricity and land rates are cheaper. Also, industries in these states are exempted from excise duty for 10 years.

According to Kapoor, the orders have decreased by almost 35 per cent since the slowdown. “Be it spare parts exporters or electronic parts producers or those in garment export, the slowdown has taken its toll on everyone. Though companies abroad are bound by the contract, they can reject the consignment on the slightest of pretext, like poor quality or delay by even a day or two,” he said, adding that it was the responsibility of both the Haryana government and the Centre to help the industry at a time like this.